Aergo Capital announces pricing of inaugural Aircraft Portfolio Transaction, ‘METAL 2017-1’

Dublin, Ireland, 31/10/2017 – Aergo Capital Limited (“Aergo”) headquartered in Dublin, Ireland announced the issuance of $584.839 million of secured notes (the “Notes”) by METAL 2017-1 Limited (“METAL Cayman”) and METAL 2017-1 USA LLC (“METAL USA”). Together METAL Cayman and METAL USA expect to use the proceeds from the sale of the Notes to acquire a portfolio of 26 aircraft with an appraised value of approximately $690 million from Aergo, which will in turn use such proceeds to refinance existing loans. Aergo Capital Limited will act as servicer for the aircraft portfolio.

The offering consists of four tranches of Notes: $430.028 million of Series A Notes with a coupon of 4.581% at par, $86.006 million of Series B Notes with a 6.5% coupon at 98.46% price, $55.044 million of Series C-1 Notes and $13.761 million of Series C-2 Notes with coupons of 8.0% and 9.75% respectively and prices of 98.62% and 99.56% respectively. The Series A Notes have an initial loan to value (“LTV”) of 62.5%, the Series B Notes have an initial LTV of 75%, and the Series C-1 and C-2 Notes have initial LTV’s of 83% and 85% respectively. The transaction was priced on October 30th 2017 and is expected to close on November 6th 2017.

Goldman Sachs & Co. LLC is serving as Sole Structuring Agent, Global Coordinator, and Sole Bookrunner on the offering.

The Notes have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. This press release is not an offer of securities for sale in the United States. The Notes may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an applicable exemption from the registration requirements of the Securities Act.