BOC Aviation Limited ("BOC Aviation" or the "Company") has signed an agreement to sell a portfolio of 17 aircraft to Silver Aircraft Lease Investment I Ltd. and affiliates ("SLVRR 2019-1").

To finance a portion of the purchase of the aircraft portfolio, SLVRR 2019-1 has issued three tranches of notes, comprising US$443 million of 3.97% Series A notes (A, Kroll / Fitch Ratings), US$73 million of 4.95% Series B notes (BBB, Kroll / Fitch Ratings) and US$32 million of 6.9% Series C notes (BB, Kroll / Fitch Ratings). The source of repayment for the notes will be limited to the aircraft portfolio, the leases and related collateral.

The issuance of US$123 million tradable Class E participating certificates financed the purchase of the balance of the aircraft portfolio. Oak Hill Advisors acted as the anchor equity investor, with the remainder of the certificates distributed to a number of institutional investors.

The notes are backed by the 17 aircraft to be acquired from BOC Aviation. These commercial jet aircraft are currently on lease to 14 airlines in nine countries and regions, and comprise seven Airbus A320 family aircraft, seven Boeing 737NG aircraft, one Boeing 787-8 aircraft and one Boeing 777-300ER. The portfolio has a weighted average age of 6 years and weighted average remaining lease term of 5.4 years, based on weighted average appraised values as of 31 March 2019.

BOC Aviation, with more than 25 years of aircraft leasing experience, will continue to manage the portfolio going forward.

This announcement does not constitute or form a part of an offer for sale of securities, nor a solicitation to purchase or subscribe for securities in the United States or any other jurisdiction. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons absent registration or an exemption from registration under the Securities Act. Any offering of securities to be made in the United States or elsewhere will be made by means of a prospectus or an offering circular issued by the issuer that will contain detailed information about the securities, the issuer and its management. Nothing in this announcement shall constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or sale would be unlawful.

Contributed by BOC Aviation