Milbank Advises on Falko Regional Aircraft Limited on Inaugural ABS Transaction

Milbank LLP has advised Citi as lead arranger and lender in connection with Regional 2021-1, the first asset-backed security (ABS) financing transaction for Falko Regional Aircraft Limited (Falko), a market-leading aircraft operating leasing and asset management company focused on the regional aircraft sector. This is the first aircraft ABS transaction to feature only regional aircraft to be completed since the COVID-19 pandemic. The deal is the core element to a refinancing package for an aircraft leasing portfolio funded by the Falko Regional Aircraft Opportunities Fund.

Milbank partner James Cameron said, “We are delighted to have acted for Citi on this significant regional aircraft financing transaction, especially given the adverse impact COVID-19 has had on the aviation sector. This deal reflects very positively on the regional aircraft sector and Falko in particular as a proven servicer and investor with a strong track record through a number of aviation cycles. The transaction is a significant achievement for Citi and Falko, and we are proud to have been involved.”

Regional 2021-1 total approximately $255M of Series A asset-backed loans that will be used to finance a portfolio of 39 regional jet and turboprop aircraft on lease to eight operators in eight countries.

The Milbank team was led by partners Freyda Mechlowicz (New York) and James Cameron (London) supported by associates Bradley Pearson and Glenn Kim (New York), Amy Bradley and Tom Jackson (London).