Turning Rock Partners (TRP), a private investment firm based in New York, launched its second asset-backed financing with AerFin, a global company in aircraft and engine parts aftermarket solutions. The transaction is backed by three Airbus A220 aircraft and further expands the partnership between the two firms.
“This second transaction with AerFin represents a natural extension of our partnership and demonstrates the strength of combining disciplined underwriting with an aligned operating partner to pursue attractive risk-adjusted returns with downside protection, underpinned by owned collateral,” Sha Khoja, head of credit at TRP, said. “It further reflects our commitment to specialized, asset-intensive sectors, where our sourcing capabilities and structuring expertise allow us to capitalize on differentiated opportunities.”
Under the terms of the transaction, the aircraft will remain in operation for an interim period, after which the engines will transition to long-term lease arrangements, and the airframes will be disassembled. AerFin will manage the teardown, maintenance and parts distribution processes, leveraging its technical expertise and global aftermarket platform to maximize the value of the assets.
“As the first independent provider to bring A220 used serviceable material to market, we’re helping to create new sources of supply for operators and lessors, improving availability and providing customers with greater flexibility,” Simon Goodson, CEO of AerFin, said. “We look forward to building on our successful relationship with Turning Rock through this landmark programme and beyond.”
Investec Aviation Finance provided debt financing for the transaction.
Holland & Knight served as U.S. legal counsel, Matheson served as Irish legal counsel and Stream Avocats & Solicitors Paris served as French legal counsel. Shannon Technical Services provided collateral assessment and technical and physical inspection services. TRP Senior Advisor Michael Platt reviewed the financing.
