MUFG closes acquisition facility for a pool of aircraft

Rhea-AI Summary

Mitsubishi UFJ Financial Group (MUFG) has successfully closed a USD 300 million acquisition facility for SKY Leasing, aimed at financing the purchase of 12 off-lease Boeing 737 MAX8 aircraft. This facility stands out due to its structural enhancements tailored for aircraft financing. MUFG has previously supported SKY in their financing ventures, establishing a strong partnership. As of May 2022, SKY has executed $3.5 billion in aircraft transactions, showcasing its growth in the leasing sector.

Positive

• MUFG closes a USD 300 million acquisition facility, enhancing its position in aviation financing.
• Strong partnership with SKY Leasing, having co-structured previous financing agreements.
• SKY Leasing has executed USD 3.5 billion in transactions, indicating robust business growth.

Negative

• None.

The USD 300 million acquisition facility will support SKY Leasing with the purchase of 12 off-lease Boeing 737 MAX8 aircraft

NEW YORK, June 29, 2022 /PRNewswire/ -- Mitsubishi UFJ Financial Group (MUFG) is pleased to announce the closing of a limited recourse acquisition facility for SKY Leasing (SKY), where the bank acted as Co-Structuring Agent and Joint Lead Arranger.  

The facility is unique as it provides the financing of off-lease aircraft with structural enhancements.

"We are very pleased with the outcome of this acquisition facility," says Matthew Crawford, EVP, Head of Capital Markets at SKY. "MUFG has been a great partner in helping us build out and diversify our fleet, a key pillar to executing on our overall strategy."

"SKY continues to be a strategic client for our aviation franchise," says Olivier Trauchessec, Co-Head of Global Aviation at MUFG. "We appreciated SKY's trust and creativity, and look forward to supporting the team with future financings."   

MUFG has led and co-structured SKY's last two warehouse facilities. In addition, MUFG acted as Co-Structuring Agent of SKY's most recent ABS (SLAM 2021-1).

About SKY Leasing

SKY Leasing ("SKY") is a premier aircraft leasing asset manager with offices in Dublin, Ireland and San Francisco, California. It was founded in 2019, in partnership with M&G Investments which acquired a stake in the business. Since January 2020, SKY Leasing has executed $3.5B of aircraft transactions across its funds under management. As of May 2022, the portfolio has a weighted average age of 2.1 years and weighted average lease term remaining of 10 years. SKY's corporate mission is to be a leading capital provider to airlines globally. For more information about SKY Leasing, visit www.skyleasing.com. 

About Mitsubishi UFJ Financial Group, Inc.'s U.S. Operations including MUFG Americas Holdings Corporation

The U.S. operations of Mitsubishi UFJ Financial Group, Inc. (MUFG), one of the world's leading financial groups, has total assets of $332.4 billion at March 31, 2022. As part of that total, MUFG Americas Holdings Corporation (MUAH), a financial holding company, bank holding company, and intermediate holding company, has total assets of $159.2 billion at March 31, 2022. MUAH's main subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. MUFG Union Bank, N.A. provides a wide range of financial services to consumers, small businesses, middle-market companies, and major corporations. As of March 31, 2022, MUFG Union Bank, N.A. operated 297 branches, consisting primarily of retail banking branches in the West Coast states. MUFG Securities Americas Inc. is a registered securities broker-dealer which engages in capital markets origination transactions, domestic and foreign debt and equities securities transactions, private placements, collateralized financings, and securities borrowing and lending transactions. MUAH is owned by MUFG Bank, Ltd. and Mitsubishi UFJ Financial Group, Inc. MUFG Bank, Ltd., a wholly owned subsidiary of Mitsubishi UFJ Financial Group, Inc., has offices in Argentina, Brazil, Chile, Colombia, Peru, Mexico, and Canada. Visit www.unionbank.com or www.mufgamericas.com for more information.

About MUFG

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,500 locations in more than 50 countries. The Group has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to "be the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.

Press contact:
Oksana Poltavets        
(646) 767-1326
opoltavets@us.mufg.jp 

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SOURCE MUFG

FAQ

What is the purpose of MUFG's acquisition facility for SKY Leasing?

The acquisition facility is intended to support SKY Leasing in purchasing 12 off-lease Boeing 737 MAX8 aircraft.

How much is the acquisition facility closed by MUFG?

MUFG closed a USD 300 million acquisition facility for SKY Leasing.

What aircraft are being financed through MUFG's acquisition facility?

The facility supports the purchase of 12 off-lease Boeing 737 MAX8 aircraft.

What has been the impact of MUFG's support on SKY Leasing?

MUFG has played a significant role in helping SKY Leasing diversify its fleet and execute its growth strategy.