GREENWICH, Conn., Jan. 16, 2018 /PRNewswire/ -- Burnham
Sterling & Co. LLC (Burnham Sterling), a financial advisory
firm specializing in transportation assets, announced it acted as
sole financial and placement advisor in a Japanese Operating Lease
with Call Option (JOLCO) for Avianca, Latin America's second-largest airline. The
transaction financed three aircraft, including one Boeing 787 and
two Airbus A320s. It was Avianca's first JOLCO
transaction and the first JOLCO closed on an FAA-registered
aircraft using a tokumei kumiai (TK) owner, a type of Japanese
limited partnership, which is the preferred investment vehicle for
Japanese investors. The transaction offered Avianca 100
percent financing at attractive rates with a fixed price early
buyout option at approximately 10 years.
"This is Avianca's fourth successful transaction with Burnham
Sterling," said Lucia Avila,
Corporate Finance Director of Avianca. "We'd heard about JOLCOs for
some time, and we turned to Burnham Sterling as our long-term
partner in aircraft financings to evaluate, structure and place
this JOLCO to meet Avianca's needs. Burnham Sterling successfully
structured the transaction while also sourcing low-cost, long-term,
on-shore debt in Japan. This
transaction opened an entirely new investor market for Avianca, and
we are absolutely thrilled with the pricing, terms and results
achieved by Burnham Sterling."
"We took a first-time JOLCO issuer to the Japanese market and
closed this transaction on time and at the projected economics,"
said Michael Dickey Morgan,
Executive Managing Director at Burnham Sterling. "The JOLCO
product can provide airlines with 100 percent financing at very
competitive all-in financing costs. This particular JOLCO is
notable because Avianca typically registers its aircraft with the
FAA, and we successfully addressed the US withholding tax issues
related to FAA-registered aircraft leased under a Japanese TK
structure, allowing Avianca to tap the deepest source of JOLCO
investors in Japan."
Burnham Sterling structured and placed the transaction with four
institutional investors in Europe
and Japan. Burnham Sterling and its affiliates have now
financed 17 new narrow-body and wide-body aircraft for Avianca
valued at over US$1.0 billion.
About Burnham Sterling
Burnham Sterling is a
specialized financial advisor focused on the transportation and
leasing industries that has closed billions of dollars in equipment
financings for clients such as Airbus, Avianca, Delta Air Lines,
SAS, United Technologies Corporation, and many more. Transactions
include debt placements, tax-subsidized leases and operating
leases. Burnham Sterling is affiliated with Greenwich Aircraft
Leasing, a lessor/manager of 32 commercial aircraft on lease to
major airlines in Europe and the
Americas. For more information visit the company's website at
www.burnhamsterling.com.
For more information please contact:
Matt Dallas
Burnham Sterling
+1 (203) 769-5916
matt.dallas@burnhamsterling.com
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content:http://www.prnewswire.com/news-releases/burnham-sterling-advises-avianca-holdings-on-innovative-jolco-financing-of-one-boeing-787-and-two-airbus-a320-aircraft-300583082.html
SOURCE Burnham Sterling