The First Structured Sale of Aircraft to Include a Dedicated Asset Manager
SHANNON, Ireland and NEW YORK, June 27, 2018 (GLOBE NEWSWIRE) -- GE Capital Aviation Services (NYSE:GE) (“GECAS”) and Oz Management (NYSE:OZM) (“Oz”) announced today the closing of STARR 2018-1. Operating as START Ltd., this closing marks the first aircraft portfolio purchase vehicle structure to include a dedicated Asset Manager for equity investors. In this transaction GECAS is selling a portfolio of aircraft to Start Ltd, which is financing its acquisition through issuance of 144A debt and equity. The sales are subject to typical conditions precedent including any regulatory approvals that may be necessary. GECAS will continue to service the portfolio and an affiliate of Oz will serve as an Asset Manager.
The diversified portfolio is comprised of 24 in-production Boeing and Airbus aircraft on lease to 16 global airlines in 15 countries, with a total appraised value of approximately $700mn.
An affiliate of Oz, through an exclusive, multi-year agreement with GECAS, will serve as an asset manager on this and potential future transactions, acting on behalf of the syndicated equity investors as an advisor to the board regarding portfolio matters. In this capacity, Oz will provide increased transparency on behalf of START Ltd. through enhanced investor reporting to improve liquidity for debt and equity investors.
Rob Shafir, CEO of Oz Management said, “We are excited to team up with the leading aircraft lessor in the world to create a new structure which enhances pooled aircraft sale transactions. GECAS — with their fleet of nearly 2000 owned, serviced and on-order aircraft — brings their domain expertise and 50 years’ aviation finance experience to this transaction. When coupled with Oz’s experience as an institutional asset manager, START Ltd. will bring increased institutional capital to the commercial aviation space.”
“By joining with Oz on this transaction, we feel confident this unique structure will bolster investor interest in the aviation finance space,” shared Alec Burger, President of GE Capital and President & CEO of GECAS, adding “While GECAS continues our lessee relationships through our servicing arrangement, this structure provides GECAS, as a seller, and buyer/issuers like START Ltd. with access to the institutional market on a more consistent basis. We look forward to teaming up with Oz on similar aircraft sales transactions going forward and capitalizing on their expertise in managing these types of platforms.”
With nearly $1 trillion in outstanding market value in commercial aviation, this asset manager structure aims to broaden the investor base in the sector and bring increased institutional capital to the space, similar to other securitization markets such as CLOs. In addition to serving as the asset manager, funds managed by Oz have the added opportunity to invest equity.
About Oz Management
Oz Management is one of the largest institutional alternative asset managers in the world, with offices in New York, London, Hong Kong, Mumbai, Beijing, Shanghai and Houston. The Company provides asset management services to investors globally through its multi-strategy funds, dedicated credit funds, including opportunistic credit funds and Institutional Credit Strategies products, real estate funds and other alternative investment vehicles. Oz Management seeks to generate consistent, positive, absolute returns across market cycles, with low volatility compared to the broader markets, and with an emphasis on preservation of capital.
The Company’s funds invest across multiple strategies and geographies, consistent with the investment objectives of each fund. The global investment strategies employed include convertible and derivative arbitrage, corporate credit, long/short equity special situations, merger arbitrage, private investments, real estate and structured credit. As of June 1, 2018, Oz Management had approximately $33.1 billion in assets under management. For more information, please visit the Company’s website (www.ozm.com).
|Oz Investor Relations Contact |
Head of Business Development and Shareholder Services
|Oz Media Relations Contact|
Gasthalter & Co. LP
GE Capital Aviation Services (GECAS) is a world leader in aviation leasing and financing. With 50 years of aviation finance experience, GECAS offers a wide range of aircraft types including narrow-bodies, wide-bodies, regional jets, turboprops, freighters and helicopters, plus multiple financing products and services including operating leases, purchase/leasebacks, secured debt financing, capital markets, engine leasing, and airframe parts management. GECAS owns or services a fleet of nearly 2,000 aircraft (1,631 fixed wing/ 333 rotary wing) in operation or on order, plus provides loans collateralized on an additional ~330 aircraft. GECAS serves ~250 customers in over 75 countries from a network of 25 offices. gecas.com
GECAS Media Contact:
+1 203 842 5887
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