Stratos inaugural ABS transaction
Stratos / JP Lease closed their inaugural ABS transaction on 30 May 2019 (JOLAIR 2019-1). Natixis acted as an active Joint Lead Bookrunner alongside Goldman Sachs and Deutsche Bank. Natixis also provided a Liquidity Facility to facilitate the ABS issuance.
This is an innovative structure which, for the first time, combined Japanese Operating Lease equity with ABS debt. Despite the challenges of the novel ownership structure and introducing a new servicer and first-time issuer to the market, the issue was very well received by the market.
The deal financed a portfolio of 15 aircraft with a Weighted Average Age of 4.1 years and Weighted Remaining Lease Term of 8.3 years, with Stratos acting as servicer of the portfolio and JP Lease arranging the Japanese equity.