Stellwagen Capital aims to launch an asset backed securitisation (ABS) in the next six months, via the team acquired from ECN in May 2017 (formerly part of Element Financial), according to Scott Corman, chief executive officer of Stellwagen Capital.
It will be Stellwagen's first ABS.
The team's previously completed ABS, ECAF I, a deal serviced by BBAM and structured by Element. Element was the administrative manager and lead investor in the E-notes, which were also syndicated for other institutions. The deal was the industry’s first pooled-aircraft ABS issuance with a syndicate of institutional equity co-investors. The transaction raised $1.55 billion and was secured against 49 aircraft. Stellwagen Capital acts as the administrative manager for ECAF I.
Speaking to Airfinance Journal about the upcoming issuance, Corman said: “It’ll be somewhat similar to what we did in ECAF I. We are more focused on younger assets with longer remaining lease terms versus what we had in ECAF I.”
“We find larger portfolios are better from a risk-adjusted basis because they provide benefits from the broader diversification resulting in lower lessee concentration risks. This will result in a transaction that is north of a billion dollars in size.”
Stellwagen's ABS was originally due to come to market in March, but was delayed when the company's management bought back the business from shareholder Acasta that same month.
Corman adds that he could see Stellwagen issue two ABS deals a year, as long as the company can acquire assets at attractive prices.