$6bn+ Global aircraft financing in 2015-2016

Aviation

Aviation is a global industry and our aviation team reflects this. Spread across our network of international offices, we service our clients worldwide, around the clock, as a single cohesive team.

Our aviation practice covers a wide spectrum including:

  • structuring of financial products
  • sale and leasebacks
  • portfolio trading
  • manufacturer’s support (including mezzanine and junior lending and associated inter-creditors issues)
  • airline operation and technical maintenance programs
  • regulatory know-how relating to aviation authority regulation, airline investment, ownership and slot allocation and trading.

We advise on important issues confronting airlines, airports, aircraft lessors, banks and other financial institutions, arrangers, suppliers and manufacturers.

We are continually investing in our practice, bringing in additional transaction capacity and adding to the pool of knowledge and experience of our team. Our recent integration of the specialist team of William KK HO & Co in Hong Kong is just one example.

Our informed approach to problem-solving is designed to achieve commercially oriented outcomes that can add real value. Our mission is to provide a consistently cost-effective, first-rate level of service.

Related Specialisms

Latest Examples of Work

    • asset finance icon

      Complex asset-based finance

      Advised CIT Aerospace & Defense Finance as part of CIT Group Inc., a global leader in transportation finance, on a US$125m credit facility to UK based aviation spares specialist. The senior secured credit facility was used to support spare parts acquisitions to service the company’s rapidly growing customer portfolio and on-going growth objectives.

      The deal saw us work with two market leading transportation finance and spares specialists and demonstrates BLP’s complex asset-based finance capabilities. The loan was syndicated by a syndicate of major UK banks.  

    • Airport Icon

      First SuperJet delivery to a Western European airline

      We advised CityJet on the leasing of 15 firm and 16 optional SSJ100 aircraft (including options to purchase). This was an important milestone for CityJet in expanding its fleet and a ground-breaking transaction for Sukhoi, as CityJet becomes the first Western European Airline to take delivery of a SuperJet.

      The scope of work included the negotiation and documentation of a bespoke framework agreement, leasing documentation, finance documents including Russian export credit, performance guarantees and engine and airframe support services agreements and acting for the airline in connection with the delivery of the aircraft. The contract value of the deal is more than $1bn, including options and aftersales services.

      The transaction involved multiple jurisdictions with BLP coordinating a large international team. In addition, members of BLP’s Preferred Firms Network in Switzerland and Italy also advised on the transaction.

    • acquisition icon

      Long term portfolio refinancing

      Originally advised Minsheng Financial Leasing on the bridge facility that DVB provided on a bilateral basis for the financing of the acquisition of certain aircraft (aircraft on lease to SAS, Iberia, Garuda and Aeroflot). The timing for completion of the purchases did not work well and the facility was amended, re-sized and used to finance existing aircraft on lease to Hainan, Europa and Pegasus – five aircraft in all.

      This financing was structured through an orphaned entity as borrower, as it was intended to refinance the bridge through an ABS or capital markets offering. In fact, the bridge was refinanced through a syndicated loan arranged by DVB. A particular issue that arose in the transaction concerned stamp duty on aircraft mortgages registered in Turkey. As with all secured portfolio financings, the main challenge for us was managing the coordination and logistical issues that arise with multiple lessees in different jurisdictions and time zones. Drawdowns under both facilities were batched to match progress with the lessees.

    • bank icon

      A bespoke German asset based funding

      We acted as transaction counsel on a €520m unrated single tranche bespoke securitisation, originated by a major German bank and one of the most active aircraft financing banks. The transaction had many innovative features including using the refinancing register for an asset-based funding transaction. The sole investor has been a major Japanese bank. In 2016, we advised on two of three German bespoke securitisations. A key element of the successful closing was the regular collaboration between our offices including cooperation with respect to numerous regulatory issues to be resolved.

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