Airbus A380-Backed Shares Sold by Doric Ahead of Emirates LeaseAndrea Rothman
Doric Lease Corp. and Nimrod Capital LLP sold shares backed by leasing revenue from Airbus SAS A380 superjumbos operated by Emirates, the third such investment asset tied to the world’s largest passenger plane.
The companies issued shares in Doric Nimrod Air Three Ltd. in London today at 100 pence, with an initial market value of 220 million pounds ($334 million), according to a statement. The shares opened at 107.5 pence and rose as high as 109.5 pence.
DNA3 is the duo’s third offering of shares tied to the ownership and stream of leasing revenues for the double-decker A380. Investors buying DNA3 will get quarterly dividends of 8.25 percent a year, based on the 100-pence issue price. Once the plane comes off lease, they will get the proceeds when the aircraft is sold.
Doric, a Dublin-based aircraft lessor, and Nimrod, a specialist investment fund, have built a business on financing A380s for airlines including Emirates and Singapore Airlines Ltd. Doric Nimrod sell shares backed by the value of the A380 based on monthly leasing revenue and for the plane’s residual value at the end of the leasing term.
The four A380s financed by DNA3 are scheduled for delivery between this September and November 2013 and will be on lease for terms of as long as 12 years, said Irena Badelska, a partner in Doric Lease Corp. Partners.
Doric Lease Corp. has already done 18 sale-and-leaseback transactions with Emirates and Singapore. Last month, Doric placed an order for 20 A380s at the Paris Air Show. It plans to lease the planes to airlines and then refurbish them when leases end to find second lessors or purchasers.
Doric and Nimrod have also financed aircraft through bonds. In mid 2012, Doric Nimrod Air Finance Alpha Ltd. sold $587.5 million in debt secured by four A380s operated by Emirates.