NWS Holdings (0659) announced that its aircraft leasing platform, Goshawk Aviation Limited (“Goshawk”), jointly owned by Chow Tai Fook Enterprises Limited, sold a total of 18 aircraft for the first time through the issuance of asset-backed securities portfolio, raising $643.6 million in the market. (about 5.02 billion Hong Kong dollars). After the release, Goshawk Management (Ireland) Limited will continue to manage the 18 aircraft as a Service and Asset Management Manager.
Under the arrangement, Goshawk sold a total of 18 aircraft, including 16 narrow-body aircraft and one wide-body aircraft, to the newly formed asset-backed securities portfolio entity of Pioneer Aircraft Finance Limited and Pioneer Aircraft Finance LLC (collectively “Pioneer”). A regional airliner. As of March 31, 2019, the 18 aircraft had an average age of 5.3 years and were being leased to 18 different airlines.
The Pioneer asset-backed securities portfolio consists of fixed-rate notes and equity certificates, mostly fixed-rate notes. The fixed rate notes are divided into three series, the yield rate ranges from 4% to 7%, and the term is 7 years. As for the equity certificate, Beach Point Capital Management LP holds 30% of the shares and becomes a basic investor. Goshawk also holds a 10% equity certificate.
Goshawk’s proceeds from the sale of 18 aircraft will be used for general working capital. Mizuho Securities is the exclusive global coordinator of this issue.