Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three series of loans (the “Loans”) issued by Harbour Aircraft Investments Limited, Series 2017.

The Loans are expected to be issued by Harbour Aircraft Investments Limited (“HAIL 2017” or the “Borrower”) represent Aergen Aviation Finance Limited’s (“Aergen”, the “Servicer” or the “Company”) second securitization. Aergen’s first securitization closed in July 2016 (“HAIL 2016”). On the closing date, $345.2 million of the $445.2 million Series A Loans, 100% of the Series B Loans and 100% of the Series C Loans will be advanced to the Borrower and the remaining $100.0 million of the Class A Loans will be advanced to the Borrower on the delayed draw dates.

Aergen, founded in 2014, is an aircraft leasing company focused on providing leasing and asset management solutions for owners and operators of mid-life and end-of-life aircraft and engines.

The loans issued in HAIL 2016 will be upsized to finance or acquire the 30 aircraft (the “Portfolio”) on lease to 18 lessees located in 16 countries (which does not include the three off-lease aircraft).

As of September 30, 2017, the initial weighted average aircraft age of the Portfolio was approximately 12.3 years with a remaining lease term of approximately 3.4 years (which assumes the management case for three aircraft which are currently off-lease). The composition of the Portfolio consists of 100% narrowbody aircraft. The Portfolio has an initial value of approximately $682.9 million.

The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Notes in the event of weak performance.

KBRA analyzed the transaction using the Aviation ABS Methodology published on October 26, 2016.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, Harbour Aircraft Investments Limited, Series 2017, which was published today at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Notes Preliminary Rating Initial Principal Amount
Series A Loans A (sf) $445,200,000
Series B Loans BBB (sf) $68,300,000
Series C Loans B (sf) $66,300,000