Milbank’s Innovative Aviation Finance Work Wins 11 Airfinance Journal Deal of the Year Awards

At Airfinance Journal’s recent 2020 Global Awards presentation, Milbank was recognized for work on 11 award-winning deals. Our team is pleased to have had the opportunity to work with our clients on these innovative “Deals of the Year” transactions, which highlight the global transportation team’s work on the most complex aviation deals over the last year.

Milbank acted as counsel on the following groundbreaking transactions in 2020:

• Innovative Deal of the Year: American Airlines $1 Billion Bond Issuance
  This transaction was one of the first airline financings to significantly leverage brand and trademark intellectual property (IP) in the airline sector. Airfinance Journal notes that the deal represents the largest private placement in the US in the airline market. Milbank represented the note purchasers.
• News Event of the Year: GECAS-PIMCO $3 Billion Aviation Fund
  This $3 billion aviation fund creates a strategic investment platform to enable GECAS and PIMCO-advised accounts to acquire new and young fuel-efficient aircraft. The transaction involved a bespoke investment structure development in order to meet both PIMCO's and GECAS's detailed investment criteria and funding requirements. Milbank represented PIMCO.
• ABS Deal of the Year: WEST V $366.2 Million ABS for 54 Engines and 3 Airframes
  WEST V represented the first Willis Lease serviced ABS with a three-tranche structure. Some of the proceeds refinanced the WEST II ABS transaction which had closed in 2012. Milbank represented Willis Lease.
• Bank Loan Deal of the Year: Bleriot Aviation Funding $300 Million Warehouse Facility
  This $300 million secured aircraft warehouse facility to Bleriot Aviation Funding Designated Activity Company, a JV between Airbus and JP Lease, was a leading example of increased joint venture activity in the aviation finance and leasing market in light of the challenging market environment during the COVID-19 pandemic. This was one of only two such deals in 2020. Milbank represented BNP Paribas and Crédit Agricole Corporate and Investment Bank as lenders and lead arrangers.
• EETC Deal of the Year: United Airlines’ 352-aircraft $3 Billion EETC
  The $3 billion United Airlines 2020-1 EETC (enhanced equipment trust certificate) transaction marked the first time an EETC was ever secured by a single pool of collateral comprised of aircraft, spare engines and spare parts. Milbank represented the underwriters.
• Cargo Deal of the Year: FedEx $970 Million EETC for 19 Freighter Aircraft
  FedEx 2020-1 marked the first freighter-only EETC in nearly two decades and was the first FedEx new issuance since 1999. At the time of this FedEx issuance during the COVID-19 pandemic, it was the only AA tranche, and it also achieved the highest loan-to-value ratio ever for that rating category. Milbank represented the underwriters.
• Overall Capital Markets Deal of the Year: SAPA 2020-1 $620 Million ABS for 21 Aircraft
  SAPA 2020-1’s (Sapphire Aviation Finance II LLC and Sapphire Aviation Finance II Limited, collectively) $620 million of fixed rate notes backed by a portfolio of 21 aircraft managed by Avolon represented the lowest blended yield across all recent debt deals, including the lowest yield across all aircraft ABS A-rated bonds and the joint lowest yield across all aircraft ABS BBB-rated bonds. Milbank represented the initial purchasers.
• Used Aircraft Deal of the Year: Altavair/KKR $600 Million Warehouse Facility
  This warehouse facility was provided by BNP Paribas, Citi, MUFG and SocGen for the benefit of KKR and Altavair’s aircraft leasing investment platform, Altitude Aircraft Leasing. The facility has been used to fund a number of aircraft, including widebodies acquired as part of a $1billion agreement to purchase aircraft from Etihad Airways. Milbank represented Altavair and KKR.
• North America Deal of the Year: Jetblue Airways $550 Million Revolving Credit Facility
  Jetblue Airways became the first-ever airline to deploy a sustainability-linked loan (SLL) by amending its existing $550 million senior secured revolving credit facility due July 2023. Airfinance Journal recognized the truly innovative nature of this deal as the interest rate or commitment fee paid on the revolving credit facility increases or decreases based on agreed-upon sustainability metrics being met, giving the airline a financial incentive to attain their targets as part of their corporate sustainability strategy. Milbank represented the lead arrangers.
• Editor’s Deal of the Year: Castlelake Lessor Term Financing
  This transaction required a ratable instrument driving the development of a new and innovative structure built off familiar EETC technology, which accommodates both the lessor's financing needs and investor requirements. Milbank represented the purchasers.
• Overall Deal of the Year for United Airlines’ $6.8 Billion Mileage Plus Program
  This hybrid transaction, which combines elements of a corporate loan and bond transactions, had all the winning components to be selected for Overall Deal of the Year as it was also one of the largest financings in aviation history. Airfinance Journal notes that no other airline had previously leveraged its frequent flier program in such a fashion, setting a benchmark in the aviation industry.

Airfinance Journal's winning deals were selected by a judging panel of senior aviation finance and independent executives and the evaluation criteria included the deal’s innovation, timing, size, complexity, and market benchmarks.