DNA Alpha Limited is planning a $630 million aircraft pass through certificates deal.
Citigroup, Goldman Sachs, and Morgan Stanley are the joint-bookrunners on the Series 2013-1 transaction with CA Securities acting as a co-manager.
The certificates were rated by Moody’s Investors Service. The $462 million A certificates, with an expected final maturity of June 30, 2023, were rated ‘A3’ (stable). The $168 million B certificates, with an expected final maturity of November 20, 2019, were rated ‘Baa3’ (stable).
The proceeds from the deal will fund the purchase of the separate equipment notes to be issued by DNA Alpha for four new Airbus A380-861 aircrafts scheduled for delivery in 2013. The remaining balance of the aircraft purchase price will come from equity from DNA Alpha's publicly listed (on the London Stock Exchange and the Channel Island Stock Exchange) parent, Doric Nimrod Air Three Limited (DNA III), according to Moody’s in a report.
DNA Alpha will lease the four aircrafts to Emirates, an international airline based in the Emirate of Dubai, under separate operating lease agreements with initial 10-year terms that are set to expire on or after the scheduled maturity date of the A-tranche certificates. The monthly rent payment by Emirates will be denominated in U.S. dollars and pounds Sterling.
The U.S. dollar component will meet the scheduled interest and principal payments on the notes, which will fund the scheduled interest and distributions of the pool balances of the Series 2013-1 certificates. The Sterling component will cover DNA Alpha's administrative costs and stipulated dividend payments on DNA III's publicly traded equity, over the full term of the certificates, Moody’s explained.
