Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three series of notes (the “Notes”) issued by WAVE 2017-1 Limited and WAVE 2017-1 LLC.
Proceeds from the sale of the Notes will be used to acquire 19 aircraft that are initially leased to 17 lessees located in 14 countries with an initial total value of approximately $578.4 million.
This transaction represents the inaugural securitization for Wings Capital Partners LLC (“Wings”, the “Servicer” or the “Company”). Wings, founded in 2013, is a commercial aircraft lessor, focused primarily in single aisle, in-production commercial jet aircraft. Wings is owned by Two Sigma Private Investments, the private markets investment division of Two Sigma Investments, LP; Corrum Capital Management, an independent, employee-owned alternative investment firm focused on investments in private real assets; and Wing’s management team.
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, WAVE 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) $393,308,000
Series B Notes BBB (sf) $57,839,000
Series C Notes BB (sf) $28,920,000
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: WAVE 2017-1 LLC Representations and Warranties Disclosure.