Esoteric

The initial offering is just $80 million, but transaction documents allow RFS to issue up to $500 million, as long as certain conditions are met, which could dilute the control and voting rights of the existing noteholders.

The wireless carrier has issued a total of $6.7 billion to year-to-date via four transactions; that's up from $2.65 via two deals in 2017 and a single, $1 billion deal in 2016.

Carlyle Aviation Capital's AASET 2016-1 and ACG-affiliated Merlin 2016-1 each have a single aircraft on lease to Small Planet, according to Deutsche Bank Securities.

The bonds will be collateralized by payments from 15 royalty streams on 14 patent-protected drugs and technologies and will rank pari passu with securities issued from the same master trust in 2017.

Commercial aircraft are considered end-of-life after 18 years, but older passenger planes are often converted to freighter cargo. Nearly 4% of the planes in Vx’s collateral pool exceed 30 years of age, according to Kroll.

The $378.5 million transaction is more heavily leveraged than the sponsor's prior deal, completed in 2015; it is also rated one notch lower by Kroll.

Proceeds from the deal, which is rated by Kroll Bond Rating Agency, will be used to repay unrated notes that the company issued earlier in 2018.

The transaction, which consists of a single tranche of notes with a preliminary A rating from Kroll Bond Rating Agency.

The $612 million Horizon Aircraft Finance 1 carries preliminary single-A ratings from Fitch and Kroll, on par with the $1.2 billion deal the sponsor completed in 2015.

The firm's risk profile has not altered, executives said on a third-quarter earnings call Wednesday; it remains "appropriately cautious."