Floreat, the independent and privately held investment group, has today announced its investment in the STARR 2019-2 asset-backed securitisation (ABS). The portfolio was originated and is serviced by GECAS.
The securitisation is the third structured sale of aircraft through the ‘STARR’ platform. It is secured by a diverse portfolio of 20 in-production Boeing and Airbus narrow-body aircraft on lease to 17 airlines in 14 countries.
The structure includes a $446 million three-tranche debt portion and $87.5 million in tradeable equity.
Floreat invested in the equity notes following a comprehensive review and analysis of the transaction.
The investment is Floreat’s second of the year, having recently taken part in Air Lease Corporation’s Thunderbolt III ABS, of which the firm was the largest single investor.
It also follows the appointment of Phil Griffiths as Managing Director within Floreat Aviation Capital Limited. Phil joined in January 2020 from DAE Capital, where he headed the company’s corporate finance and capital markets team.
Floreat has been active in the aviation market since 2015 and remains committed to identifying long-term, risk-adjusted and uncorrelated return opportunities for its clients.
Phil Griffiths, Managing Director at Floreat commented: ‘We are pleased to have participated in the transaction. This deal reflects our continued commitment to the aviation market. The quality and reputation of GECAS as servicer and the composition of an all narrow-body portfolio, ensured it was an attractive opportunity for us. We look forward to continuing our relationship with such platforms again in 2020 and beyond, as we focus on building long-term relationships with trusted and established aircraft lessors.’
Trevor Ricards, Senior Vice President, and head of GECAS’s US capital markets group added: ‘We are very pleased to see a new source of capital for the STARR platform from the London-based investment firm Floreat. We, as a servicer, very much look forward to working with Floreat’s aviation team again in the coming months and years.’