Vedder Price is pleased to announce that two of its aviation transactions were selected for inclusion in Ishka’s prestigious 2024 Deal of the Year Award Winners list, a global recognition of outstanding innovation, complexity and execution in aviation finance.

Best MEA Deal 2024: Altavair / Qatar Airways Term Loan

This financing was structured as a $75.6 million co-terminus term loan of three 777-300 ER aircraft on lease from Altavair to Qatar.  The aircraft  were part of a trade with the Bank of China. The transaction had a unique structure in that it bifurcated an amortising and balloon tranche to maximize overall advance and optimise pricing for Altavair. Each tranche was pari passu with the underlying collateral. In addition, the assets were subject to EOL compensation based on mirror-in / mirror-out conditions. The facility structured around the EOL for each aircraft, incorporating EOL tests to ensure a net level of EOL payable during the term.

Altavair served as borrower, with MUFG and CaixaBank as lenders. Vedder Price provided legal counsel through a team led by Shareholders Cameron Gee and Justine Chilvers.

Best Commercial Bank Deal 2024: VivaAerobus Portfolio Term Loan

This financing was structured to maximise the advance rate against each of the assets. Each tranche, as a result, featured a dual-step amortisation profile, allowing Viva to maximise its day-one advance and provide the lenders comfort with the development of the LTV during the term of the financing.

The transaction also addressed the cost of near-term engine performance restoration events (“EPR”), via EPR-driven LTV tests, supporting the high day-one advance across the assets in the portfolio. The structure took into consideration the maintenance condition of the assets during the term of the deal across three vertically cross-collateralised tranches.

Initially, the financing was closed as a $154 million dual-tranche loan, financing four A320ceo being acquired by Viva from SMBC Aviation Capital and four PW1133 GTF engines being acquired from Pratt & Whitney. The facility was later upsized by $52 million to support Viva’s acquisition of two additional A320ceo aircraft from Avolon.

Borrower and participants included VivaAerobus, HSBC Mexico, BOT Lease, Mizuho Marubeni Leasing and Stonebriar. The Vedder Price legal team was led by Shareholder Cameron Gee and Associate John Geager.

These recognitions reflect Vedder Price’s deep experience and commitment to delivering strategic, innovative counsel in the global aviation finance sector.  We congratulate our clients and teams on these achievements.