First-of-its-Kind Transaction Earns Pillsbury Asset Finance Team Another Deal of the Year Recognition

Airline Economics hailed Oaktree and Worldstar’s purchase and financing of 18 airplanes from Investec as the Overall Debt Deal of the Year.  The transaction was unique in that at the time of launching the asset-backed securities necessary to complete the transaction, more than 90% of the aircraft subject to the ABS were not owned by the transaction sponsor (and were instead owned by a third party seller).  Previously, the rating agencies had required at least 50% of the aircraft to be owned by the sponsor.  Since the structure and incentives mitigated the risk of aircraft not being transferred, the rating agencies allowed this first-of-kind approach, which has opened up new avenues of direct capital markets financing for private equity investors looking to acquire portfolios.

The cross-office Pillsbury team advising Oaktree and Worldstar on this transaction was led by Finance partner Graham Tyler (London). Partners Mark Lessard (NY) and Jon Goldstein (NY), special counsel Jason Greenberg (LA), counsel Adam Beavill (London), senior associates Rakhi Savjani (London) and Chris Knight (London), and associates John Hunt (NY), Isaac Lee (NY) and Abigail Carter (London) were also heavily involved.

Recognized by Chambers & Partner as one of the leading international aviation finance law firms, Pillsbury’s Asset Finance team is a leader in all aspects of transactions for assets. Broad experience with cross-border financings of assets located and operated throughout the world enables Pillsbury lawyers to handle large-scale transactions involving multiple jurisdictions. As leading practitioners in a variety of related practices, including tax, aviation, international trade and capital markets, our team is able to provide integrated and comprehensive service to meet the unique requirements for every client or transaction.