Boc Aviation Limited · HKEX:2588
Boc Aviation — Investor Presentation (October 2019)
91 slides from Boc Aviation's investor presentation, Oct 24, 2019
Slide 1: BOC Aviation ABS Seminar 2019
BOC AVIATION ABS SEMINAR 2019 24 OCTOBER 2019 HONG KONG
Slide 2: Disclaimer
Disclaimer This presentation contains information about BOC Aviation Limited (“BOC Aviation”), current as at the date hereof or as at such earlier date as may be specified herein. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solic
Slide 3: 1. Welcome and Introduction
1. Welcome and Introduction Timothy Ross Head of Investor Relations & Corporate Communications 3
Slide 4: Timothy Ross, Head of Investor Relations & Corporate Communications
Timothy Ross Head of Investor Relations & Corporate Communications • More than 25 years of investment banking and aviation-related experience • In charge of Investor Relations and Corporate Communications • In depth knowledge of capital markets and industry investment community 4
Slide 5: Agenda
Agenda No. Topic Duration Presenter (minutes) 1 Welcome and introduction 5 Timothy Ross 2 Aircraft ABS overview 45 David Walton 3 How an aircraft ABS works and how it fits 40 Andrew Taylor into our sales plan Coffee 30 4 Appraiser’s perspective (Morten, Beyer & 30 David Tokoph Agnew) 5 Role and resp
Slide 6: 2. Aircraft ABS Overview
2. Aircraft ABS Overview David Walton Chief Operating Officer 6
Slide 7: David Walton, Chief Operating Officer
David Walton Chief Operating Officer • In charge of operations, including legal, technical, portfolio management departments and information technology, investor relations, strategy and compliance departments • Joined BOC Aviation in 2014 • 33 years of legal, aviation finance and leasing experience
Slide 8: Aircraft ABS Background
Aircraft ABS Background Pie ©) BOC AVIATION
Slide 9: Global Capital Markets
Global Capital Markets Capital Markets Fixed Equity Income Corporate Treasuries/ Non-agency Agency debt ABS bonds Municipals MBS Aircraft ABS 9
Slide 10: The Fixed Income Space: In Excess of US$100 trillion
The Fixed Income Space: In Excess of US$100 trillion • The U.S. fixed income markets are the largest in the world1,2 • Around 40% of global fixed income markets • The deepest and most liquid Hong Kong, 0.5% Singapore , 0.4% Australia, 2% Other developed markets, 0.4% Emerging markets, 2% Canada, 3%
Slide 11: ABS – a Growing Part of a Rapidly Growing Market
ABS1,2 – a Growing Part of a Rapidly Growing Market 1985 2018 Money Asset- Money Asset- Markets, Backed, Markets, Backed, 0.0% Federal Municipal, Federal 8.7% 3.8% Municipal, Agency 2.3% 8.9% Agency 20.9% Securities, Securities, 4.3% 6.4% Corporate Debt, Corporate 21.5% Debt, 19.2% Treasury, Mortgag
Slide 12: Selected ABS Sectors
Selected ABS Sectors ABS Consumer Commercial Credit card receivables Shipping containers Student loans Aircraft Auto loans Other commercial equipment Collateralized loan obligations (CLOs)1 Collateralized bond obligations (CBOs)2 Notes: 1. Backed by corporate bank debt 2. Backed by high-yield bonds
Slide 13: ABS 101
ABS 101 • An asset-backed securitisation is a pooling of revenue-generating assets for the benefit of investors • Investors can purchase debt and/or equity interest • The issuer is a bankruptcy remote special purpose vehicle (“SPV”) • The assets are serviced by a professional asset manager • Transac
Slide 14: Typical ABS Transaction Structure
Typical ABS Transaction Structure Servicer Seller Aircraft sales Proceeds Servicing agreement Issuer (SPV) Equity noteholder Proceeds Liquidity Provider Proceeds Debt Capital Structure Notes 14
Slide 15: Why ABS
Why ABS Investor Sponsor • Access to a diversified pool of assets • Diversifying funding sources and within a specific asset class investor base • Diversification can be achieved on • Alternative sales channel for asset multiple levels: underlying obligors, dispositions asset types, lease term, juri
Slide 16: ABS Historical Performance is Strong
ABS Historical Performance is Strong ABS default rates are the lowest in the structured finance space even during the GFC Source: S&P Global Ratings: When The Cycle Turns: How Would Global Structured Finance Fare In A Downturn? (4 Sep 2019) 16
Slide 17: Aircraft ABS Evolution – Tradeable Equity
Aircraft ABS Evolution – Tradeable Equity TODAY: 144A tradeable equity THEN: M&A style portfolio sale product Timeline/ • Six to twelve month • Structured as a syndicated equity Process for process product Initial • Large ticket sizes limit • Anchor investor identified prior to Structuring investor
Slide 18: Tradeable E-Note Structure Expands the Investor Base
Tradeable E-Note Structure Expands the Investor Base Growing market acceptance for 144A tradeable equity Growing equity investor base • Ten tradable e-note transactions since 2018 • Total equity investment of more than • Investor base now more than 35 $1bn to date distinct accounts • Significant imp
Slide 19: Aircraft ABS Market Volumes Build
Aircraft ABS Market Volumes Build Post-crisis Aircraft ABS debt issuance volume US$ billion 8.0 6.2 7.0 3.3 3.7 4.2 1.3 2013 2014 2015 2016 2017 2018 Sep 2019 YTD Post-crisis Aircraft ABS equity issuance volume US$ billion 1.1 1.3 0.7 0.6 0.6 0.3 0.3 2013 2014 2015 2016 2017 2018 Sep 2019 YTD 2019 o
Slide 20: Aircraft ABS is Attractive to Debt Investors
Aircraft ABS is Attractive to Debt Investors 350 300 Aircraft ABS, BBB Spread (basis points) 250 Aircraft ABS, A 200 150 100 50 0 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 Jul-19 Sep-19 Subprime Auto A Subprime Auto BBB Aircraft A Aircraft BBB CDX (Credit Default Swap Index), IG
Slide 21: Why Aircraft ABS Collateral is so Attractive
Why Aircraft ABS Collateral is so Attractive • Mobile equipment • Global market for leased aircraft • Generally stable residual values, active secondary market • Operating lessor is like a senior, unsecured creditor • Security deposit, rent paid in advance • Airline due diligence • Jurisdictional du
Slide 22: Partnering with BOC Aviation
Partnering with BOC Aviation 22
Slide 23: BOC Aviation – Who Are We?
BOC Aviation – Who Are We? • One of the world’s top five aircraft lessors • The largest in Asia • Bank of China owns 70% • Listed on the HKEX • Four Independent Non-Executive Directors • Total assets of US$19.2 billion as at end-June 2019 • 509 aircraft1 • Consistent profitable performance over more
Slide 24: Experienced Global Management Team
Experienced Global Management Team Robert Martin Wang Jian Phang Thim Fatt Steven Townend Gao Jinyue David Walton Managing Director & Vice-Chairman & Deputy Managing Chief Commercial Chief Commercial Chief Operating Chief Executive Deputy Managing Director & Chief Officer (Europe, Officer (Asia Paci
Slide 25: Core Competencies - BOC Aviation Track Record
Core Competencies - BOC Aviation Track Record Since inception in 1993: More than 820 aircraft purchased totalling more than US$45 billion Purchasing More than 910 leases executed with > 160 airlines in 57 countries and Leasing regions Financing1 More than US$26 billion in debt raised since 1 J
Slide 26: Customer Quality Focus
Customer Quality Focus • 820 airlines in service today • Focus on 139 airlines or only 17% of the airlines in the market – minimum credit score, above 20 aircraft Airline segmentation by credit score Our target 139 airlines operate 71% of and fleet size the current in-service aircraft 631, 3% 244, 1
Slide 27: How Our Owned Fleet Evolves
How Our Owned Fleet Evolves Number of aircraft delivered, purchased and sold 41 19 24 9 13 16 45 27 (3) 16 6 7 6 14 22 18 21 17 31 5 58 61 3 12 6 5 41 44 48 (5) 27 22 22 31 31 7 14 17 (12) (12) (3) (10) (10) (6) (21) (30) (22) (33) (43) (37) (34) (3) (6) (5) (11) (10) 2007 2008 2009 2010 2011 2012 2
Slide 28: 3. How An Aircraft ABS Works And How It Fits Into Our Sales Plan
3. How An Aircraft ABS Works And How It Fits Into Our Sales Plan Andrew Taylor Head of Aircraft Sales 28
Slide 29: Andrew Taylor, Head of Aircraft Sales
Andrew Taylor Head of Aircraft Sales • Heads the Aircraft Sales team globally and is responsible for aircraft trading and maintaining relationship with aircraft investors • Eight years with BOC Aviation and 12 years with Boullioun Aviation, one of BOC Aviation’s founding shareholders • 30 years of a
Slide 30: Digging into the Aircraft ABS Structure
Digging into the Aircraft ABS Structure • The pool of cash flows securitised are the payments due under aircraft operating leases, i.e. • Rentals payable • Maintenance cash flows (monthly maintenance reserves or end-of-life (EOL) payments paid at the end of the lease (a.k.a. return compensation)) •
Slide 31: Review of SLVRR 2019-1
Review of SLVRR 2019-1 • The portfolio sale by BOC Aviation to SLVRR priced in June 2019 • The pool of assets comprised 17 young to mid-life aircraft with leases attached • Diverse range of lessees, aircraft and geographic location • Issuing vehicle is an Irish tax resident Cayman Island trust • The
Slide 32: SLVRR 2019-1: Collateral Portfolio Overview
SLVRR 2019-1: Collateral Portfolio Overview Key portfolio statistics Portfolio by aircraft type1 Portfolio by Country / Region1 A319-100 Thailand India China3 A321-200 Maintenance Adjusted 7.2% 2.1% A320-200 6.0% 3.6% 20.7% US$653.8m Ukraine Base Value1 737-700 24.4% 6.9% 11.4% Mexico 7.2% Number of
Slide 33: SLVRR 2019-1 Structure Diagram
SLVRR 2019-1 Structure Diagram A Notes B Notes C Notes Equity A BBB BB Certificates $443m $73m $32m $120m SLVRR Purchase Price1 17 aircraft Liquidity with leases Facility2 BOC Aviation attached $2.5m Transaction Reserve Commercial Expenses Accounts Bank Notes: 1. Disbursed proportionally upon novati
Slide 34: The Waterfall
The Waterfall1 Every month, the ABS issuer receives cash generated by the underlying aircraft and distributes it through the waterfall Rent Maint Res EOLs Sales Available Collections Pay Expenses (servicer fees, maintenance claims, transition costs (mods)) Pay A notes interest, then B notes interest
Slide 35: SLVRR 2019-1 Debt Capital Structure
SLVRR 2019-1 Debt Capital Structure SLVRR 2019-1 Debt Profile Series A Series B Series C LTV1 67.8% 78.9% 83.8% Size (US$’m) 443.0 $73.0 $32.0 Ratings ‘A / A’ ‘BBB / BBB’ ‘BB / BB’ (Fitch / Kroll) Yield 4.000% 5.000% 7.000% Weighted average life 4.9 years 4.9 years 3.4 years Amortization Format 13-y
Slide 36: SLVRR 2019-1 E-Notes
SLVRR 2019-1 E-Notes • The ABS product was initially developed as a debt instrument • New structures now allow for the issuance of equity notes • SLVRR 2019-1: “tradeable” E-Note structure with an anchor investor SLVRR 2019-1 144A E-Notes Total Equity Raised $120.0m Passive E-Certificate IRR 19.25%
Slide 37: SLVRR 2019-1 Investment Highlights
SLVRR 2019-1 Investment Highlights1 20 49 71 % of contracted % cash-on-cash % Loan to value (LTV) cash flows (vs. yield on passive E- at assumed offering size) Notes2 redemption date (ARD) 37% of leases expire Rapid deleveraging (13- post ARD year straight line for As and Bs, 7-year for Cs) Notes: 1
Slide 38: Maintenance Cash Flows - What Are They?
Maintenance Cash Flows - What Are They? • Lessees either pay monthly maintenance reserves or return compensation at end of lease (“EOL”) to compensate for their utilization of the aircraft • Lessor has to fund drawings of maintenance reserves to reimburse cost of performing major maintenance • Two-w
Slide 39: How Does SLVRR Fund Maintenance Obligations?
How Does SLVRR Fund Maintenance Obligations? • Maintenance expenses are funded by building up reserves through a up to 15-month look-forward1 • For example, if there is a $10m MR drawdown expected on 1 January 2021, the chart below illustrates the amount of junior and/or senior maintenance reserves
Slide 40: How ABS Fit Into Our Aircraft Sales Plan?
How ABS Fit Into Our Aircraft Sales Plan? • BOC Aviation typically sells around 30 aircraft each year to: • Manage fleet age • Balance portfolio • Broad strategic plan: • Sell roughly half of these aircraft into the traditional trade market (largely composed of smaller leasing companies/ mid-life le
Slide 41: Conclusion: Why BOC Aviation is Back to the ABS Market?
Conclusion: Why BOC Aviation is Back to the ABS Market? • The SLVRR platform allows us to: • Use the ABS market as an alternative sales channel • Execute using a well tested structure • Limit our exposure to capital markets risk - 10 weeks to pricing after investment bank selection • Leverage on our
Slide 42: 4. Appraiser's Perspective
4. Appraiser’s Perspective David Tokoph CEO, Morten, Beyer & Agnew (External Speaker) 42 42
Slide 43: Topics
Topics • Company Overview • The Global Narrowbody Fleet and Valuation • Market Development 43 43
Slide 44: mba is a Full Service Aviation Consulting Firm
mba is a Full Service Aviation Consulting Firm 44
Slide 45: Topics
Topics • Company Overview • The Global Narrowbody Fleet and Valuation • Market Development 45
Slide 46: Narrowbody Fleet Size
Narrowbody Fleet Size 25000 15000 Fleet Size 10000 5000 mba 3 z 8s g RR g mmm 90-120 mm 120-150 mmm 150+ Future Delivery 90-120 Mm Future Delivery 120-150 —Avearge Seat Growth since 1998 lm Future Delivery 150+ 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% a3eqUa.Iaqg YIMOID 5000 4500 4000
Slide 47: Narrowbody Order Growth
Narrowbody Order Growth —737MAX7 —737MAX8& 737 MAXQ9_——_-==737 MAX 10 —A319neo —A320neo —A321neo —CS100 3000 2500 —CS300 ——— Number of Aircraft 1500 so 1000 0 - oo OS S SP Vw Pm BM Na of of Years Since Launch Date Source: mba Star Fleet; Airbus; Boeing; Bombardier 4 mba
Slide 48: Market Adjustment
Market Adjustment 10% “ON 0% Downcycle and Stalled Downcycle Recovery N\ 15%) seneeeeeneeneeedannennnneane Market Adjustment Factor (MAF) -20% ——A320-200 -25% —737-800 -30% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 mba 48
Slide 49: Maintenance Value – B737-700 [CFM56-7B22]
Maintenance Value – B737-700 [CFM56-7B22] 49
Slide 50: Aircraft Value vs. Lease Value
Aircraft Value vs. Lease Value 50
Slide 51: Volatility Study - Narrowbody
Volatility Study - Narrowbody 51
Slide 52: Narrowbody Values - New
Narrowbody Values - New $52.00 $50.00 $48.00 $46.00 $44.00 $42.00 $40.00 $38.00 $36.00 $34.00 mba New A320-200 MV vs. BV Downcycle, Downcycle Stalled Recovery Wan FE FL FEFE FLIES IPP PLS IS ——Market Value mmeBase Value New 737-800 NG MV vs. BV Downcycle Downcycle Taw FE PLFEFI FLESH PIPL IPP? —Mark
Slide 53: Narrowbody Values - 3 Year Old
Narrowbody Values - 3 Year Old 53
Slide 54: Narrowbody Values - 6 Year Old
Narrowbody Values - 6 Year Old 54
Slide 55: Narrowbody Values - 9 Year Old
Narrowbody Values - 9 Year Old 55
Slide 56: Lease Encumbered Values
Lease Encumbered Values Lease Encumbered Value — New Aircraft ++ Assumptions: + Age-0O + Lease Term — 120 months ++ Return Condition — Full Life + Inflation Rate — 2% + Discount Rate — 6% + Market Lease Rate cBv $44.90 +2.4% LEV $45.97 New FBV at Lease $23.22 320-200 Expiry ; eI VTE-LVEM FBV at Leas
Slide 57: Value Reference
Value Reference 60.00 50.00 ° o ~~ Hy 8 P 8 ° 2 40.00 _ | a) 30.00 — 8 . - 2 20.00 — — . 7 rT Distressed, Runout . - AF, HT Engines 10.00 Distressed, Runout” Runout AF and AF, HT Engines Engines 0.00 O12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 737-800 Half-Life 737-800 Ful-Life © Lease Attac
Slide 58: Technology Value - Narrowbody
Technology Value - Narrowbody 58
Slide 59: Topics
Topics • Company Overview • The Global Narrowbody Fleet and Valuation • Market Development 59
Slide 60: Growth Moving Back to Trend
Growth Moving Back to Trend 60
Slide 61: Yield Versus Load Factor
Yield Versus Load Factor mYield per RPM sYield in Constant 1982-84 Dollars —Load Factor 83.0 20 / a 78.0 g 7 5 5 * 73.0 £ 3 10 (|| lI 68.0 ov pnt ' 63.0 : ANT 0 ] 53.0 gS © AV ak AO 4d OD sy YD WD AY A © FPP EF EEE ILE LF PF EPI II EFS GG Fir wroorg Source: mba Star Fleet; IATA 4 mba Jo}oe4 peo] ade
Slide 62: 5. Role and Responsibilities of the Servicer
5. Role and Responsibilities of the Servicer Guy Brooker Head of Planning and Portfolio Management 62
Slide 63: Guy Brooker, Head of Planning and Portfolio Management
Guy Brooker Head of Planning and Portfolio Management • Responsible for all aircraft portfolio matters including development of portfolio management strategy, lease management, third-party management services and providing strategic marketing support. • Previously Vice President of Airbus China • Mo
Slide 64: Servicing Overview
Servicing Overview Key Servicing Functions Approach To Servicing Lease Management Contract Management System (CMS) Lease Invoicing and collections Management Letter of Credit management Monitor insurance and other contractual obligations Develop enforcement strategy if necessary Technical
Slide 65: Servicing Capabilities and Investor Priorities
Servicing Capabilities and Investor Priorities • Global coverage of world’s leading airlines with large pool of existing customer relationships • Deep market knowledge Investor priorities • Highly experienced technical team, monitoring aircraft and supporting transitions • Maximise cash flow • Lease
Slide 66: Aircraft Lease Servicing Track Record
Aircraft Lease Servicing Track Record Aircraft Lease Servicing • More than 25 years of experience in servicing third-party aircraft assets • Serviced more than 100 managed aircraft – includes ABS portfolio of SLVRR • High average fleet utilization of 99.8% over the last 12 years, including the owned
Slide 67: High Utilisation and Collection Rates
High Utilisation and Collection Rates Consistently High Fleet Utilization High fleet utilization1 • Active, experienced lease placement 100.0%100.0%100.0%100.0%99.8% 99.0% 99.9%100.0%99.9% 99.8% 99.9% 99.5% team • Maintained 99.8% aircraft utilization Average = 99.8% rate on average since 20081 Best
Slide 68: Repossession – Avianca Brazil
Repossession – Avianca Brazil • Two aircraft - back in operation < 45 days First lessor to repossess aircraft from Avianca Brazil 68
Slide 69: Repossession – Jet Airways
Repossession – Jet Airways • Seven aircraft (five owned, two managed) - back in operation in 21 days, on average 69
Slide 70: Quarterly Investor Report Topics
Quarterly Investor Report Topics Portfolio performance • Summary of Actual versus Projected Revenue and Uses over the reporting period vs Projection at start of period • Observations on financial performance during the period • Concentration limits and triggers at end of period • Remarketing status
Slide 71: Cash Flow Modelling
Cash Flow Modelling • Model maintained by Intex on an • Model initially prepared by ongoing basis Investment bank, and maintained by • Based on issued documents Servicer & Asset Manager on an • Updated from monthly reports and other ongoing basis information provided by Servicer & • Updated by Servi
Slide 72: SLVRR DealVector Model
SLVRR DealVector Model • Cash flow model available to investors on DealVector.com https://my.dealvector.com/models/showModel/DHG3-SLVRR20191 • Model permits investors to run custom stress cases • Post-closing monthly updates to monitor performance and allow investor forecasting • Regular (quarterly)
Slide 73: 6. Investor Engagement and Final Remarks
6. Investor Engagement and Final Remarks Timothy Ross Head of Investor Relations & Corporate Communications 73
Slide 74: Contents
Contents • Aircraft ABS process and timing • Importance of investor engagement, and our plan for SLVRR • How Aircraft ABS fits with our investor relations • How ABS premia to other asset classes are trending • How you can get more involved with the product 74
Slide 75: Transaction Timetable – SLVRR 2019-1
Transaction Timetable – SLVRR 2019-1 From kick-off to pricing in 10 weeks 24-Apr to 17-May 14-24-May Anchor Round 2 • 13-Jun: Dataroom opens Anchor Round 1 Global Non Deal • 21 to 22-May: Meeting to 53 investors • Equity teaser (to 12 accounts) Roadshow with selected bidders (2) • 17 to 21-Jun: Deal
Slide 76: Efficient Post Closing Novation Process
Efficient Post Closing Novation Process Only three of 17 left to novate No. Lessee Aircraft Type Closing Date 1 Alaska 737-800 19-Jul-19 2 Southwest 737-700 20-Jul-19 3 Southwest 737-700 23-Jul-19 4 Interjet A321-200 24-Jul-19 5 Kenya 787-8 25-Jul-19 6 Nok 737-800 1-Aug-19 7 Indigo A320-200 9-Aug-19
Slide 77: Investor Engagement and Plan
Investor Engagement and Plan • SLVRR commenced with concept paper delivery in Asia to raise awareness • The market development round focused most on Asia; deal roadshow and subsequent investment saw most activity in the US Market development Deal roadshow Total investors Accounts met/invested 18 US
Slide 78: Aircraft ABS and Investor Relations
Aircraft ABS and Investor Relations • Three key groups of investors: 2588 equity, fixed income and ABS Year Class Event 2012 FI IG credit rating (S&P BBB and Fitch A-) 2015 FI IG credit rating upgrade (S&P A- and Fitch A-) 2015 ABS 24 aircraft, single E-note investor (~U$970 mn) 2016 EQ IPO (~US$1.1
Slide 79: Premium Declines as Volume and Information Increases
Premium Declines as Volume and Information Increases • Rapid growth in Aircraft ABS Aircraft ABS vs. Subprime Auto Single A spreads* over UST (bps) issuance is driving liquidity 160 • Investor confidence is also rising as information becomes more 140 freely available • Average spread over treasuries
Slide 80: Market Makers Add to Liquidity and Confidence
Market Makers Add to Liquidity and Confidence Debt market makers Transaction1 Lead Banks (Structuring2 and Active Bookrunners) HORZN 2019-2 Mizuho, Citi, CS, GS, MUFG AASET 2019-2 GS, MUFG, DVB, Natixis MACH I 2019-1 Mizuho, BNP, Citi, DB WAVE 2019-1 GS, DB, CACIB SLVRR 2019-1 DB, MS, BOCI HORZN 201
Slide 81: Conclusion
Conclusion • Aircraft ABS is well established and rapidly growing pool • Well established in the US and expanding in Asia, where we have focused market development efforts • Our portfolio sale to SLVRR increased Asia-based investor interest and participation • …presenting investors an attractive yie
Slide 82: To download a copy of the presentation
To download a copy of the presentation, please visit: https://www.bocaviation.com/en/Investors/ Corporate-Presentations.aspx Follow BOC Aviation on LinkedIn: www.linkedin.com/company/bocaviation 82
Slide 83: Appendix 1: Glossary of Terms
Appendix 1: Glossary of Terms 83
Slide 84: Glossary of Terms (1)
Glossary of Terms (1) • Anchor Equity – Equity committed prior to bookbuilding, by a lead investor. • Anticipated Repayment Date (ARD) – Expected Final Payment Date for the Series A Notes and the Series B Notes. • AOG –The period of time when an aircraft is “on ground” or “off lease”, in transition
Slide 85: Glossary of Terms (2)
Glossary of Terms (2) • Initial Reserves Balance – The amount transferred to the ABS vehicle at closing to cover maintenance expenses, general expenses or class C interest for a period of time, usually the first 12 months. • Legal Final Maturity – in reference to a bond, the date before which the bo
Slide 86: Glossary of Terms (3)
Glossary of Terms (3) • Rapid Amortization Event – When any of the following events occur in relation to a payment date: • A debt service coverage ratio amortization event whereby the DSCR drops below a predefined level • A utilization event whereby the number of aircraft on lease drops below a pred
Slide 87: Appendix 2: Value Definitions
Appendix 2: Value Definitions 87 91
Slide 88: Collateral Valuations - Definitions
Collateral Valuations - Definitions Current Market Value – ISTAT defines Market Value (or Current Market Value if the value pertains to the time of the analysis) as the appraiser’s opinion of the most likely trading price that may be generated for an asset under market circumstances that are perce
Slide 89: Collateral Valuations - Definitions
Collateral Valuations - Definitions Full Life Values - An aircraft is considered to be “full life” when all scheduled maintenance has zero calendar time, zero flight cycles, and zero flight hours accumulated since all major maintenance events, including overhauls, repairs, and replacements. An a
Slide 90: Collateral Valuations - Definitions
Collateral Valuations - Definitions Lease Encumbered Value- Lease encumbered value is the Appraiser’s opinion of the value of an aircraft, under lease, given a specified lease payment stream (rents and term), and estimated future residual value at lease termination, and an appropriate discount rat
Slide 91: www.bocaviation.com
www.bocaviation.com BOC Aviation Limited 8 Shenton Way #18-01 Singapore 068811 Phone +65 6323 5559 Facsimile +65 6323 6962 Incorporated in the Republic of Singapore with limited liability Company Registration No. 199307789K 91