GECAS and Sculptor Capital Management announced today the closing of STARR 2019-2. Under the terms of the transaction, GECAS is selling twenty in-production Boeing and Airbus narrowbodies to START III Ltd. The diversified portfolio has an average aircraft age of 8.4 years and includes aircraft currently on lease to 17 airlines in 14 countries, with a total appraised value of approximately $539 million.
START III Ltd. is financing its acquisition through its issuance of 144A/Reg. S debt and equity. Similar to the STARR 2018-1 transaction – the first aircraft portfolio purchase to include 144A tradeable equity and a dedicated asset manager for equity investors – and STARR 2019-1, an affiliate of Sculptor will serve as an asset manager and GECAS will continue to service the portfolio.
GECAS is a world-leading lessor with significant experience servicing aircraft. Having developed a successful model for servicing third-party aircraft, GECAS’ 25-year track record includes servicing more than 550 aircraft across 15 multi-owner platforms with initial portfolio values totaling nearly $15 billion.
An affiliate of Sculptor will serve as an asset manager on behalf of the syndicated equity investors advising START III Ltd.’s Board regarding portfolio matters. In this capacity, Sculptor will provide increased transparency on behalf of START III Ltd. through enhanced investor reporting to improve liquidity for debt and equity investors.
With nearly $1 trillion in outstanding market value in commercial aviation, this asset manager structure aims to broaden the investor base in the sector and bring increased institutional capital to the space, similar to other securitization markets such as CLOs. In addition, funds managed by Sculptor have invested equity in START III Ltd.
The sales are subject to typical conditions precedent including any regulatory approvals that may be necessary.