Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three series of notes (the “Notes”) issued by Sprite 2017-1 Limited and Sprite 2017-1 US LLC.
Proceeds from the Notes will be used to acquire 21 aircraft (the “Portfolio”) on lease to 15 lessees located in 12 countries. The 21 aircraft will be purchased in a joint venture between Oaktree Capital Management (UK) LLP and World Star from third-party sellers. World Star, founded in 2003, is a full service aircraft management company with expertise in mid-to-late life model, high quality, used commercial aircraft.
As of October 15, 2017, the initial weighted average aircraft age of the Portfolio is approximately 8.9 years with a remaining lease term of approximately 3.8 years. The Portfolio has an initial value of approximately $694.0 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, Sprite 2017-1 Pre-Sale Report, 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 Notes A (sf) $457,000,000
Series B Notes BBB (sf) $88,000,000
Series C Notes BB- (sf) $40,000,000
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report entitled ABS: Sprite 2017-1 LLC Representations and Warranties Disclosure.