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A Member of Bank of China Group

Press Release

BOC Aviation Announces Sale of 17 Aircraft

16 Jul 2019

BOC Aviation Limited (“BOC Aviation” or the “Company”) has signed an agreement to sell a portfolio of 17 aircraft to Silver Aircraft Lease Investment Limited and affiliates (“SLVRR 2019-1”).

To finance a portion of the purchase of the aircraft portfolio, SLVRR 2019-1 has issued three tranches of notes, comprising US$443 million of 3.97% Series A notes (A, Kroll / Fitch Ratings), US$73 million of 4.95% Series B notes (BBB, Kroll / Fitch Ratings) and US$32 million of 6.9% Series C notes (BB, Kroll / Fitch Ratings). The source of repayment for the notes will be limited to the aircraft portfolio, the leases and related collateral.

The issuance of US$123 million tradable Class E participating certificates financed the purchase of the balance of the aircraft portfolio. Oak Hill Advisors acted as the anchor equity investor, with the remainder of the certificates distributed to a number of institutional investors.

The notes are backed by the 17 aircraft to be acquired from BOC Aviation. These commercial jet aircraft are currently on lease to 14 airlines in nine countries and regions, and comprise eight Airbus A320 family aircraft, seven Boeing 737NG aircraft, one Boeing 787-8 aircraft and one Boeing 777-300ER. The portfolio has a weighted average age of 6 years and weighted average remaining lease term of 5.4 years, based on weighted average appraised values as of 31 March 2019.

BOC Aviation, with more than 25 years of aircraft leasing experience, will continue to manage the portfolio going forward.

This announcement does not constitute or form a part of an offer for sale of securities, nor a solicitation to purchase or subscribe for securities in the United States or any other jurisdiction. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons absent registration or an exemption from registration under the Securities Act. Any offering of securities to be made in the United States or elsewhere will be made by means of a prospectus or an offering circular issued by the issuer that will contain detailed information about the securities, the issuer and its management. Nothing in this announcement shall constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or sale would be unlawful.



About BOC Aviation

BOC Aviation is a leading global aircraft operating leasing company with a fleet of 507 aircraft owned, managed and on order. Its owned and managed fleet was leased to 94 airlines worldwide in 39 countries and regions as at 31 March 2019. BOC Aviation is listed on the Hong Kong Stock Exchange (HKEx code: 2588) and has its headquarters in Singapore with offices in Dublin, London, New York and Tianjin. For more information, visit www.bocaviation.com.

About Oak Hill Advisors

Oak Hill Advisors is a leading independent investment firm with approximately $34 billion of capital under management across distressed and performing credit investments. OHA has over 25 years of experience investing in a variety of asset classes, including performing and non-performing corporate credit, shipping, real estate, aviation and structured products as well as private equity. The firm’s investment activities are concentrated in North America and Europe. OHA manages multi-strategy and single strategy credit funds, distressed funds, collateralized loan obligations, other customized mandates and a business development company. The firm’s investment activities are driven by a fundamental value-oriented philosophy focused on credit analysis, relative value analysis, risk-adjusted return generation, loss avoidance and active risk management. The firm invests on behalf of a diverse, global investor group. OHA employs more than 300 people globally and is headquartered in New York, with other key offices in London, Hong Kong, Sydney, Luxembourg and Fort Worth, Texas. For more information, visit www.oakhilladvisors.com.

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For more information, please contact:
Timothy ROSS
Tel: +65 6325 9878
Mobile: +65 9837 9873
timothy.ross@bocaviation.com
www.bocaviation.com