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Vedder Thinking | News Vedder Price Advises Initial Purchasers on $540 Million Secured Notes Offering by MAPS 2021-1 Trust

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Vedder Price is pleased to announce that it advised Deutsche Bank Securities, Goldman Sachs & Co. LLC, Citigroup and Natixis , as the initial purchasers of $540.12 million of secured notes (the “Notes”) issued by MAPS 2021-1 Trust (“MAPS 2021-1”), which is the third aviation ABS transaction in the MAPS ABS program.

MAPS 2021-1 intends to use a portion of the proceeds of the Notes to acquire a portfolio of 20 Airbus and Boeing aircraft valued at approximately $628 million from funds advised by Apollo Global Management. The portfolio features 18 narrowbody aircraft and two freighters, with a weighted average age of 5.8 years overall and 4.3 years excluding freighters, and a weighted average remaining lease term of 8.4 years. Merx Aviation will act as servicer for the portfolio

The offering consisted of three classes of Notes: $417.65 million of Class A Notes with an interest rate of 2.521%, rated A1(sf) by Moody’s Investor Services (“Moody’s”) and A(sf) by Standard & Poor’s Rating Services (“S&P”); $72.23 million of Class B Notes with an interest rate of 3.425%, rated Baa1(sf) by Moody’s and BBB(sf) by S&P; and $50.24 million of Class C Notes with an interest rate of 5.437%, rated Ba1(sf) by Moody’s and BB(sf) by S&P.

The Vedder Price team was led by Jeffrey T. Veber, Vice Chair of the firm’s Executive Committee, member of the firm’s Board of Directors and Global Transportation Finance Shareholder, Kevin A. MacLeod, Shareholder and Head of the New York Capital Markets Group and Matthew P. Larvick, Tax Shareholder with support from Global Transportation Finance Associates Daniel M. Cunix, Majk Kamami and John G. Munyon.

“We are delighted to support this sophisticated group of clients on MAPS 2021-1,” said Jeffrey T. Veber, Vice Chair of the firm’s Executive Committee, member of the firm’s Board of Directors and Global Transportation Finance Shareholder. “This transaction continues to highlight our market-leading experience and strength with ABS and capital markets in the aviation sector.”

“MAPS 2021-1 is a key milestone in the re-opening of the aviation ABS market as the aviation industry re-emerges from the COVID-19 pandemic. Our Vedder Price team is proud to advise the initial purchasers and continue our support of the MAPS ABS program with Apollo and Merx Aviation,” added Kevin A. MacLeod, Shareholder and Head of the New York Capital Markets Group.

The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (Securities Act), or the securities laws of any jurisdiction. The Notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.



Professionals



Jeffrey T. Veber

Shareholder



Kevin A. MacLeod

Shareholder



Matthew P. Larvick

Shareholder



Daniel M. Cunix

Associate



Majk Kamami

Associate



John G. Munyon

Associate