Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (the “Notes”) issued by MAPS 2019-1 Limited.
This transaction represents the inaugural serviced securitization for Merx Aviation Servicing Limited (the “Servicer”) who is an indirect wholly owned subsidiary of Merx Aviation Finance, LLC (“Merx” or the “Company”).
Proceeds from the sale of the Notes will be used to acquire or refinance, as applicable, 19 aircraft on lease to 13 lessees located in 8 countries (and one off-lease aircraft) with initial value of approximately $516.9 million. A portion of the Note proceeds will be used to refinance the RISE Ltd. aircraft ABS transaction (“RISE”) that closed in February 2014. The RISE transaction was initially issued and serviced by GECAS with Merx as an equity investor. Over the past year, Merx replaced GECAS as servicer of RISE. Of the 19 aircraft in the MAPS 2019 1 Portfolio, 18 are currently owned by subsidiaries of the Issuers as part of the RISE securitization. The other asset is currently owned and serviced by Merx and will be acquired by the Issuers. KBRA notes that RISE Ltd. was renamed to MAPS 2019-1 Limited.
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 Global Aviation ABS Methodology published on November 28, 2017.
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Notes Preliminary Rating Initial Note Amount
Series A Notes A (sf) $325,675,000
Series B Notes BBB (sf) $72,372,000
Series C Notes BB (sf) $31,017,000