London-‐based aviation finance arranger Magi Partners, working in conjunction with its Seoul-‐ based joint venture partner Youjee Partners, has arranged the purchase of an A380-‐800 on lease to Emirates from Stellwagen Finance Company Limited, the holding company for Aviation Finance Company (“AFC”). AFC initially arranged 100% of the bridge capital for Magi Partners and Youjee Partners, facilitating the lease novation and sale.
Magi Partners and Youjee Partners have placed the operating lease for the A380-‐800 entirely with the Korean institutional investor market by means of a private placement with a group of Korean non-‐bank financial institutions, investing through a Korean fund structure. This transaction marks the first A380-‐800 operating lease financed entirely by Korean investors.
Lease management services to the Korean investors are being provided by Magi Partners Aircraft Management Limited (“MPAM”).
Yulchon LLC (Seoul), Clifford Chance (Singapore) and Walkers (Cayman) acted for the Korean investors; Allen & Overy (London) acted for AFC and Pillsbury Winthrop Shaw Pittman acted for Emirates.
Sean Cleghorn, Partner of Magi Partners said: “We are delighted to have been able to complete this ground-‐breaking transaction with such a prestigious airline as Emirates. Korean institutions provide a growing source of capital, through increasingly diverse products, for the global aviation market and we look forward to completing more such transactions in the future.”
“Working with such quality counterparties such as Emirates, Magi and Youjee is particularly rewarding,” said Douglas Brennan, Chief Executive Officer of AFC. “It affirms the strength of our business model and demonstrates the capabilities AFC brings to the table. I am delighted that the AFC team was able to facilitate this transaction for Magi and the Korean market.”