Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two series of notes (the “Notes”) issued by Thunderbolt II Aircraft Lease Limited and Thunderbolt II Aircraft Lease US LLC (together, “TBOLT 2018” or the “Issuers”).

This is the third term securitization of aircraft managed by Air Lease Corporation (“ALC” or the “Company”). ALC and ALC Aircraft Limited (the “Servicers”) will act as servicer for TBOLT 2018. KBRA notes that ALC will be purchasing a minority proportion of the equity in TBOLT 2018.

Proceeds from the sale of the Notes will be used, together with the equity proceeds to acquire 18 aircraft (the “Portfolio”) on lease to 16 lessees located in 15 countries. As of April 30, 2018, the initial weighted average aircraft age of the Portfolio is approximately 8.0 years with a weighted average remaining lease term of approximately 4.7 years. The Portfolio consists of 17 narrowbody aircraft (88.0% by value) and one widebody aircraft (12.0% by value). The Portfolio has an initial value of approximately $575.7 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.

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 Note Amount
Series A Notes A (sf) $375,000,000
Series B Notes BBB (sf) $75,000,000