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News

  • Deal Closings
  • December 2016$91 MM

    Closed final tranche of funding for Avianca under proprietary EAIV ®2 structure mandated in JulyRequest more information

  • November 2016$15 MM

    Closed $15 MM of senior financing for leasing company secured by aircraft operated by IberiaRequest more information

  • September 2016$33 MM

    Closed second tranche of multi-currency funding for Avianca under proprietary EAIV ®2 structure mandated in JulyRequest more information

  • August 2016$33 MM

    Closed first tranche of multi-currency funding for Avianca under proprietary EAIV ®2 structure mandated in JulyRequest more information

  • July 2016$157 MM

    Retained by Avianca to arrange multi-currency senior and mezzanine financing secured by narrowbody and widebody aircraft under proprietary EAIV ®2 structureRequest more information

  • July 2016$20 MM

    Together with our affiliate, Greenwich Aircraft Leasing, arranged the sale of 3 aircraft operated by American AirlinesRequest more information

  • March 2016$402MM

    Closed balance of senior loan financing under January 2016 assignment for Delta with US and international investor participantsRequest more information

  • February 2016$48MM

    Closed first tranche of senior loan financing under January 2016 assignment for Delta with US investor participantRequest more information

  • January 2016$450MM

    Retained by Delta to arrange senior loan financing secured by narrowbody and widebody aircraftRequest more information

  • December 2015$88 MM

    Closed final tranche of funding for Avianca under proprietary EAIV®2 structure mandated in JuneRequest more information

  • December 2015$45 MM

    Closed two tranches of funding for NAC under proprietary SAFE®1 structure mandated in December 2014Request more information

  • October 2015$259 MM

    Closed three tranches of funding for Avianca under proprietary EAIV®2 structure mandated in JuneRequest more information

  • September 2015$45 MM

    Closed two tranches of funding for NAC under proprietary SAFE®1 structure mandated in December 2014Request more information

  • July 2015$33 MM

    Closed first tranche of funding for Avianca under proprietary EAIV®2 structure mandated in JuneRequest more information

  • July 2015$300MM

    Retained by Hawaiian Airlines under multi-year agreement to finance A320neos under proprietary EAIV®2 and Japanese lease structuresRequest more information

  • June 2015$379 MM

    Mandated to place secured financings under May 2014 agreement with Avianca under proprietary EAIV®2 structureRequest more information

  • March 2015$45 MM

    Closed first tranche of funding for NAC under proprietary SAFE®1 structure mandated in DecemberRequest more information

  • January 2015TBD

    Entered into long-term agreement with major global money manager to provide price data on private transactions in its portfolio.Request more information

  • January 2015$130 MM

    Completed November 2011 assignment for Vedder Price-led US investor group as financial advisor for the restructuring of 30 aircraft operated by American Airlines.Request more information

  • December 2014$165 MM

    Mandated by Nordic Aviation Capital (NAC) to arrange $165 million of financing under proprietary SAFE®1 structureRequest more information

  • December 2014$125 MM

    Closed issuance of senior secured notes under May 2014 agreement with Avianca under proprietary EAIV®2 structure. Request more information

  • December 2014$80 MM

    Closed sale of widebody aircraft subject to lease to Alitalia under June 2014 assignment with Airbus.Request more information

  • November 2014$28 MM

    Closed issuance of senior secured notes under May 2014 agreement with Avianca under proprietary EAIV®2 structure. Request more information

  • September 2014$647 MM

    Closed senior secured loan financing under August 2014 assignment for Delta with major US institutional investors, banks and finance companies.Request more information

  • July 2014$647 MM

    Retained by Delta to arrange senior loan financing secured by widebody aircraft.Request more information

  • June 2014$68 MM

    Closed senior secured financing to AerCap under May 2013 agreement with major US institutional investor under proprietary EAIV®2 structure.Request more information

  • June 2014$80 MM

    Retained by Airbus to arrange sale of widebody aircraft subject to lease to Alitalia.Request more information

  • June 2014$196 MM

    Closed purchase of senior secured loans under May 2013 agreement with major US institutional investor under proprietary EAIV®2 structure.Request more information

  • May 2014$700 MM

    Retained by Avianca to arrange senior loan, Japanese and German lease financings under multiyear agreement.Request more information

  • April 2014$184 MM

    Closed sale of senior loans for United Technologies under January 2014 assignment.Request more information

  • February 2014$208 MM

    Closed purchase of senior secured loans under May 2013 agreement with major US institutional investor under proprietary EAIV®2 structure.Request more information

  • December 2013$184 MM

    Retained by United Technologies to assist in selling senior loans held in its portfolio.Request more information

  • June 2013$37 MM

    Closed sale of bankruptcy claims for Pratt & Whitney under March assignment.Request more information

  • May 2013$2.0 Bil

    Entered into multiyear agreement with major US institutional investor to fund up to $2.0 billion of Burnham-originated commercial transactions.Request more information

  • April 2013$45 MM

    Closed sale/leaseback financing on one A320 aircraft for Go Air with US participant under August 2011 assignment.Request more information

  • March 2013$45 MM

    Closed sale/leaseback financing on one A320 aircraft for Go Air with US participant under August 2011 assignment.Request more information

  • February 2013$37 MM

    Retained by Pratt & Whitney to assist in selling bankruptcy claims in airline restructuring.Request more information

  • January 2013$67 MM

    Closed operating leases on two A320 aircraft with European lessor under July 2012 operating lease assignment with SAS.Request more information

  • December 2012$45 MM

    Closed sale/leaseback financing on one A320 aircraft for Go Air with US lessor under August 2011 assignment.Request more information

  • November 2012$1.2 Bil

    Retained by Airbus under multiyear agreement to sell narrowbody jet aircraft subject to committed operating leases.Request more information

  • November 2012$500 MM

    Retained by ATR to arrange commercial financing on regional aircraft under proprietary SAFE®1 structure.Request more information

  • September 2012$62 MM

    Closed second of two sales of four commercial aircraft engines to Engine Alliance under June 2011 assignment for Airbus.Request more information

  • August 2012TBD

    Entered into multi-year agreement with Koch Supply & Trading to develop and market risk management servicesRequest more information

  • July 2012$62 MM

    Closed first of two sales of four commercial aircraft engines to Engine Alliance under June 2011 assignment for Airbus.Request more information

  • June 2012$112 MM

    Retained as exclusive placesment agent by SAS to identify two additional A320 aircraft to lease in under operating leases.Request more information

  • June 2012$45 MM

    Closed sale/leaseback financing on one A320 aircraft for Go Air with US lessor under August 2011 assignment.Request more information

  • May 2012$67 MM

    Closed operating leases on three A320 aircraft with Middle Eastern lessor under May 2011 aircraft sourcing assignment with SAS.Request more information

  • December 2011$13 MM

    Retained by Pratt & Whitney as financial advisor for the restructuring of ten aircraft and engines operated by American Airlines.Request more information

  • December 2011$89 MM

    Closed operating leases on four A320 aircraft with US lessor under May 2011 aircraft sourcing assignment with SAS.Request more information

  • November 2011$130 MM

    Retained by Vedder Price-led US investor group as financial advisor for the restructuring of 30 aircraft operated by American Airlines.Request more information

  • July 2011$180 MM

    Retained as exclusive placement agent by Pratt & Whitney to arrange forward sale/leaseback financing on four new A320 aircraft.Request more information

  • June 2011$124 MM

    Closed sale/leaseback with US participant on eight aircraft engines for Airbus.Request more information

  • April 2011$157 MM

    Retained as exclusive placement by SAS to source seven A320 aircraft to lease in under operating leases.Request more information

  • February 2011$124 MM

    Retained as exclusive placement agent by Airbus to arrange sale/leaseback financing on eight commercial aircraft engines.Request more information

  • August 2010TBD

    Completed strategic consulting assignment for Westjet.Request more information

  • April 2010TBD

    Started operations as Burnham Sterling & Co. LLCRequest more information

Published News

  • March 2017

    Avianca closes private placement

    Colombian airline Avianca has closed a private placement with Burnham Sterling to fund three aircraft, comprising two Airbus A320 family and one Boeing 787.

    Burnham Sterling acted as lead arranger and sole book runner in a privately-placed transaction.

    The transaction utilised the Enhanced Aviation Investment Vehicle (EAIV) private debt structure developed by Burnham Sterling. It was Burnham Sterling’s first multi-currency EAIV providing both US Dollar and Euro funding for Avianca.

    Excerpt from Airfinance Journal

    Colombian airline Avianca has closed a private placement with Burnham Sterling to fund three aircraft, comprising two Airbus A320 family and one Boeing 787.

    Burnham Sterling acted as lead arranger and sole book runner in a privately-placed transaction.

    The transaction utilised the Enhanced Aviation Investment Vehicle (EAIV) private debt structure developed by Burnham Sterling. It was Burnham Sterling's first multi-currency EAIV providing both US Dollar and Euro funding for Avianca.

    The deal, according to Burnham Sterling, provided Avianca with "attractive mezzanine funding", achieving loan-to-values as high as 95% of the appraised value. The transaction has a 12-year term and the last of the three aircraft was delivered in December 2016.

    "This is Avianca's third successful transaction using Burnham Sterling's EAIV structure," says Lucia Avila, Fleet Finance Director of Avianca. "We thoroughly evaluated and tested EAIV against competing products and execution alternatives and found EAIV raises nearly as much cash as operating lease financing but with an all-in internal rate of return that is below that of an operating lease."

    "Euro interest rates are at historic lows and we are proud to provide access to these low rates without the need for any supplemental collateral or mark-to-market provision imposed on Avianca," says Michael Dickey Morgan, executive managing director at Burnham Sterling. "Our EAIV structure allowed Avianca to access the Japanese market in a debt financing for the first time."

    Burnham Sterling structured and placed the transaction with four institutional investors in Europe and Asia. Burnham Sterling and its affiliates have now financed fourteen new narrowbody and widebody aircraft for Avianca.

  • June 2016

    Delta Airlines and Burnham Sterling Close $450 Million in Private Placements, Reaching Over $1 Billion in Total Transactions

    Burnham Sterling & Co. LLC (Burnham Sterling), a financial advisor specializing in asset financing, announced that it closed a $450 million private placement for the world's second largest airline, Delta Air Lines (NYSE: DAL). Burnham Sterling and affiliates have now financed 48 mainline aircraft and raised over $1 billion in private placement transactions directly for Delta Air Lines.

    GREENWICH, Conn., June 8, 2016 /PRNewswire/ -- Burnham Sterling & Co. LLC (Burnham Sterling), a financial advisor specializing in asset financing, announced that it closed a $450 million private placement for the world's second largest airline, Delta Air Lines (NYSE: DAL). Burnham Sterling and affiliates have now financed 48 mainline aircraft and raised over $1 billion in private placement transactions directly for Delta Air Lines.

    "This is our third time working with Burnham Sterling, demonstrating our faith in their ability to execute complex private placements quickly and efficiently," said Andy Nelson, Assistant Treasurer of Delta Air Lines. "We were pleased that three-quarters of the capital raised was provided by seven new investors introduced by Burnham Sterling. Their team was consistently responsive and focused on achieving an on-time closing under the pricing and terms originally agreed."

    "As the sole book runner, we were able to achieve Delta's objectives by developing and executing a placement strategy that insulated this transaction from the recent widening of high yield spreads," said Michael Dickey Morgan, Executive Managing Director of Burnham Sterling. "We structured the financing, arranged the rating and placed the transaction with a diverse set of investors around the world. Burnham Sterling has successfully completed private placement transactions for a host of global airlines and aircraft manufacturers."

    About Burnham SterlingBurnham Sterling is a specialized financial advisor and an affiliate of Burnham Sterling Securities LLC, an investment bank focused on transportation, leasing, real estate and project finance. Burnham Sterling is led by Michael Dickey Morgan, the former head of Babcock & Brown's aircraft advisory and placement group and is based out of B&B's former office in Greenwich, Connecticut. Burnham Sterling and its affiliates have financed or acted as financial advisor on billions of dollars of major transportation assets. For more information visit the company's website at www.burnhamsterling.com.

    For more information please contact:


    Matt Dallas
    Burnham Sterling
    +1 (203) 769-5916
    matt.dallas@burnhamsterling.com

  • May 2016

    Burnham Sterling Closes Eight-Aircraft Private Placement with Avianca Holdings

    Burnham Sterling Securities LLC (Burnham Sterling), an investment bank specializing in transportation asset finance, announced it has acted as lead arranger and sole book runner in a privately placed transaction for Avianca (NYSE: AVH), Latin America's second largest airline, for eight aircraft, including six Airbus A320 family and two Boeing 787 aircraft...

    GREENWICH, Conn., March 17, 2016 /PRNewswire/ -- Burnham Sterling Securities LLC (Burnham Sterling), an investment bank specializing in transportation asset finance, announced it has acted as lead arranger and sole book runner in a privately placed transaction for Avianca (NYSE: AVH), Latin America's second largest airline, for eight aircraft, including six Airbus A320 family and two Boeing 787 aircraft.  The transaction utilized the Enhanced Aviation Investment Vehicle (EAIV) private EETC[1] Structure, which was developed by Burnham Sterling. The last of the eight aircraft delivered in December 2015. The total Burnham Sterling EAIV financing provided to Avianca accounted for 65% of the Company total fleet financing needs for the year 2015.

    "This is Avianca's second transaction using Burnham Sterling's EAIV structure," said Diana Calixto, Treasurer of Avianca. "We thoroughly evaluated and tested EAIV against competing products and execution alternatives, including EETCs.  We are very pleased with the pricing, terms and simplicity achieved by Burnham Sterling through EAIV and receiving financing consistent with the terms agreed months in advance of closing.  We were especially impressed with the new institutional investor relationships Burnham Sterling created."

    "Every investor in the Burnham EAIV financings closed by Avianca was a first-time investor for the airline, expanding the breadth and depth of their investor universe," said Michael Dickey Morgan, Executive Managing Director at Burnham Sterling.  We are particularly pleased that our EAIV structure allowed Avianca to access the U.S. and Korean institutional investor market.

    Burnham Sterling structured the transaction, arranged the rating and placed the transaction with six major institutional investors in the U.S., Europe and Asia.

    About Burnham SterlingBurnham Sterling is a specialized investment bank focused on the transportation and leasing industries. Burnham Sterling is led by Michael Dickey Morgan, the former head of Babcock & Brown's aircraft advisory and placement group and is based out of B&B's former Greenwich, Connecticut office.  Burnham Sterling and its affiliates have financed or acted as financial advisor on billions of dollars of major transportation assets. For more information visit the company's website at www.burnhamsterling.com.

    For more information please contact:


    Matt Dallas
    Burnham Sterling
    +1 (203) 769-5916
    matt.dallas@burnhamsterling.com

  • March 2016

    Private EETCs can offer compelling pricing for fleet financing

    Excerpt from Aviation Finance

    Investment bank Burnham Sterling recently closed its second privately placed EETC for Avianca to finance eight of the South American airline group's 2015 aircraft deliveries. Aviation Finance's Dustin O'Neill spoke with Burnham Sterling's Michael Dickey Morgan on the recent transaction, the bank's proprietary EAIV (Enhanced Aviation Investment Vehicle) structure, issuing private EETCs, and the broader aviation finance market.

    Excerpt from Aviation Finance

    Investment bank Burnham Sterling recently closed its second privately placed EETC for Avianca to finance eight of the South American airline group's 2015 aircraft deliveries. Aviation Finance's Dustin O'Neill spoke with Burnham Sterling's Michael Dickey Morgan on the recent transaction, the bank's proprietary EAIV (Enhanced Aviation Investment Vehicle) structure, issuing private EETCs, and the broader aviation finance market.

    The transaction used Burnham Sterling's proprietary 'Enhanced Aviation Investment Vehicle' (EAIV) private EETC Structure and it is the second time that Avianca has used the structure to finance its aircraft. We asked Michael Dickey Morgan, Executive Managing Director at Burnham Sterling, to explain the product and the attractions of issuing a private EETC over a public EETC.

    'The EAIV is structured to be a privately placed EETC. The EETC is the most successful product in the aircraft financing market but it has many shortfalls for airline issuers,' says Morgan.

    'Firstly, as a public transaction there are very high upfront costs and processes. To prepare a prospectus to do an EETC is a very significant and costly undertaking. The private nature of the EAIV structure means these upfront costs are lower. As a private transaction the ability to document and close is more straight forward and less costly,'

    'Secondly, EETCs require a liquidity facility from a third party bank. This facility attracts upfront fees for the maximum committed amount, as well as commitment fees for the committed but undrawn amount, in addition any drawn cash can attract interest of as much as 400 basis points over LIBOR to fund the interest. The bank also jumps ahead of investors in the repayment waterfall,' says Morgan. He adds that many private placement investors don't value the concept of the liquidity facility. 'The EAIV product avoids the liquidity facility and all of the costs of that, we use structural enhancements in the transaction to address the liquidity issue.'

    'The EAIV has a significant advantage on upfront costs, and in the case of the Avianca transaction, we feel the deal economics were significantly better than what was achieved by LATAM in the EETC market which issued at around the same time,' he said.

    Morgan says EAIVs are rated by Nationally Recognized Statistical Rating Organizations (NRSRO), in the case of the latest deal, Kroll Bond Ratings rated it as investment grade.

    'Another significant advantage of the EAIV over an EETC is that in an EAIV the transaction is committed in advance by investors on the closing day but it remains undrawn. When an airline issues an EETC it has to fund the entire amount of the issuance from day one, any cash that is not used immediately is parked in an escrow account. So in an EETC the airline pays the full coupon, the cash in the escrow is making almost nothing, as it waits for delivery of the aircraft that are being financed by the EETC. In some cases deliveries may be 12 or 18 months away yet an EETC issuer pays interest on the entire amount, this means the carry costs can be very high. In the EAIV airlines only draw the funds once the aircraft are delivered. If the delivery is 6 months out that can be a significant saving in coupon for the airline. We do charge a commitment fee, about 50 basis points per annum, but it is a significant saving over the EETC. The EAIV is fully committed, a legally binding commitment, but the airline doesn't have to pay interest on money they can't use.'

    Avianca transaction
    This is Avianca's second transaction using the EAIV and one of the advantages in using it was the operational flexibility it offered the airline group according to Morgan. 'Avianca told us that they were able to get a significant amount of operational flexibility by using the EAIV product.' Avianca has four operating airlines, and the EAIV allows Avianca to operate the financed aircraft under any of their four operating certificates. A major part of this transaction, says Morgan, was this multi-jurisdictional aspect and ensuring the final deal would give Avianca the flexibility it required, a 'milestone' for Burnham Sterling. 'We had four different operator jurisdictions, Colombia, Peru, Costa Rica and El Salvador, all of which are permitted to operate the aircraft, creating significant issues with regard to how investor collateral works. Avianca were able to achieve the full operational flexibility under the EAIV. Given that some of the jurisdictions don't have a lot of a repossession history to rely on, we are proud of the transaction.'

    The transaction itself covered 8 aircraft. In a very competitive market, Morgan said the deal at one point was downsized to a 4 aircraft transaction as the airline group weighed up EETC and bank debt with other players, but the final transaction was scaled up to eight aircraft - six Airbus A320 family and two Boeing 787 aircraft - which Morgan says Burnham Sterling had significant investor demand. The $380 million transaction was placed with six institutional investors in the U.S., Germany and Korea and accounted for about 65 per cent of Avianca's fleeting financing needs in 2015. Importantly for Avianca all six of the investors were first-time investors in the airline with Avianca's treasurer Diana Calixto 'specially impressed with the new institutional investor relationships Burnham Sterling created' and also praised 'the pricing, terms and simplicity' of the transaction that were 'consistent with the terms agreed months in advance of closing.'

    Morgan says that he expects to close out about another two or three EAIVs in 2016 and that they are currently offering 'very competitive, and even compelling' pricing in comparison to public EETCs and bank debt. Outside of the investment bank's EAIV activity Morgan says, 'The market continues to be robust, we are closing a lot of transactions, I think we are going to continue to see a lot of activity in the market this year. I think capital markets will remain attractive to the aviation sector. If you look at EETC spreads, they have widened along with most other corporate and high yield spreads but this market is doing relatively well. The airline industry is a big beneficiary of lower oil prices and is a bit of a safe haven relative to some other industries right now.'

  • April 2015

    Delta announces $647m refinancing

    Excerpt from Airfinance Journal

    Delta Airlines has announced a $647 million refinancing that closed in 3Q 2014.

    The private placement involved institutional debt from a range of investors and banks. Delta mandated investment bank Burnham Sterling in August last year to structure and place the loans. It acted as sole arranger and placement agent for the transaction.

    Excerpt from Airfinance Journal

    Delta Airlines has announced a $647 million refinancing that closed in 3Q 2014.

    The private placement involved institutional debt from a range of investors and banks. Delta mandated investment bank Burnham Sterling in August last year to structure and place the loans. It acted as sole arranger and placement agent for the transaction.

    The senior secured debt was secured against 17 aircraft, including 16 A330s and one A319.

    The MSNs of the aircraft are: 2095, 0633, 0722, 0663, 0827, 0718, 0621, 0843, 0857, 0858, 0859, 0806, 0817, 0614, 0591, 0609 and 0631.

    "We retained Burnham Sterling as our placement agent on refinancing transactions valued over $600 million in 2014, and we were very pleased with their investor access, extensive market knowledge, and speed in execution," said Andy Nelson, Assistant Treasurer of Delta Air Lines.

  • March 2015

    Airline Economics article - "New Kids on the Block"

    Excerpt from Airline Economics

    An EETC-like product has recently been publicized with the disclosure that Avianca had closed a $153 million privately placement Enhanced Aviation Investment Vehicle private EETC Structure (EAIV) in November and December of 2014. The airline group is also prepping the launch of a much larger repeat transaction later this year.

    Excerpt from Airline Economics

    An EETC-like product has recently been publicized with the disclosure that Avianca had closed a $153 million privately placement Enhanced Aviation Investment Vehicle private EETC Structure (EAIV) in November and December of 2014. The airline group is also prepping the launch of a much larger repeat transaction later this year.

    Burnham Sterling Securities, an investment bank specializing in transportation asset finance, acted as lead arranger and sole book runner on the privately placed transaction for Avianca EAIV 2014. The transaction, which is similar in structure to a traditional US EETC, is secured on two new A320-family aircraft and one new Boeing 787 aircraft.

    "This is the first time Avianca has been involved in this type of transaction, and we were very pleased with the execution of the deal and the flexibility it provides us with" said Gerardo Alfaro, Director of Fleet Finance at Avianca.

    "We are experiencing strong and growing demand from new investor sources seeking to finance commercial aircraft," said Michael Dickey Morgan, Executive Managing Director at Burnham Sterling. "Burnham Sterling is structuring transactions to channel investor demand to meet the needs of airlines. We specialize in private placements, which provide access to a growing global investor base, bringing new investors and attractive terms to our clients in the airline industry."

    Burnham Sterling structured the transaction, arranged the rating and placed the transaction with a major institutional investor.

    Burnham Sterling states that this transaction is essentially "identical to EETC" as it works to increase debt issuance to investment grade. Few details of the private deal have been released although the transaction was structured with two tranches, A and B, which both achieved that investment grade rating.

    Pricing of the tranches has not been disclosed, although Morgan stated that Avianca tested this transaction against other sources of capital available in the market and determined the EAIV structure was more attractive.The biggest challenge in the structuring of EAIV 2014 for Avianca was the airline group's own operational structure. Since Avianca is a holding company based in Panama, which owns four separate airlines in four countries - Colombia, El Salvador, Costa Rica and Peru-it has to get approval to base all of those three aircraft in all four of those countries, only one of which, Colombia, has implemented the Cape Town Convention.

    "Normally, you have an airline that has one jurisdiction, Avianca is one airline but four jurisdictions-this was the biggest hurdle in the transaction," explains Morgan. "We had to get the rating agencies comfortable with the three non-Cape Town jurisdictions and Colombia, which has Cape Town but we still needed to work with them on Colombia as well. Just because the country has Cape Town doesn't mean it is automatically acceptable. We conducted a significant amount of legal work with law firms in each of those jurisdictions."

    Regardless of the structural and legal challenges, the deal was structured relatively rapidly-Burnham Sterling started working with Avianca in May 2014 and the deal closed in November 2014.

    Burnham Sterling has entered into a multi-year agreement with Avianca to source capital in new and innovative ways. "Avianca had never done a US private placement before, and they were so happy about it that they want to do it again in 2015," says Morgan.

    Burnham Sterling is working with Avianca on a repeat of Avianca EAIV 2014, which will close this year. The new deal will be much larger, closer to $500 million and will be secured on a mixed pool of new aircraft, mainly 737s and A-320 family aircraft.

    The 2015 transaction Burnham Sterling is targeting will involve multiple investor groups from the U.S., Europe and Japan. "We have our investor group already identified for that deal, and we are waiting now for the green light from Avianca" says Morgan.

    Burnham Sterling closed approximately $600 million of EAIV transactions in 2014, which were all privately placed with airlines and lessors, with one secondary transaction. In 2015, the bank hopes to close about $1bn or more in 2015.

    "Burnham Sterling closed over $1.5 billion of transactions in 2014 and we are especially proud to have introduced so many new investors to our issuer clients", said Morgan. It's looking like 2015 will be an even more active year, and we currently have more than $500 million of transactions in our pipeline. Our focus is on structuring customized transactions to channel investor demand and efficiently meet the needs of our clients."

    The company's transactions in 2014 involved a mix of new and post-delivery mainline and regional aircraft and were completed on behalf of airlines, manufacturers and leasing companies, including Delta Air Lines, AerCap and Pratt & Whitney. Investors in the company's transactions include banks, leasing companies and fund managers.

    "We retained Burnham Sterling as our placement agent on refinancing transactions valued over $600 in 2014, and we were very pleased with their investor access, extensive market knowledge, and speed in execution," said Andy Nelson, Assistant Treasurer of Delta Airlines.

    Paul Oechsli, Treasurer of Pratt & Whitney adds "We have a long-standing relationship with Burnham Sterling, and once again we retained them as our placement agent in 2014, and they delivered an impressive outcome on almost $200 million of transactions for us. Their innovative solutions delivered significant incremental value to Pratt & Whitney which, without Burnham Sterling, we would not have achieved."

    There are some in the industry who argue that EAIV's are not true EETC's, which in a sense is correct since they don't issue certificates nor is the cross subordination between the tranches, nor the liquid support. But in essence, an EAIV achieves the same goal as an EETC which is to issue investment grade-rated debt.

    For issuers with fewer unencumbered aircraft EAIV's make sense. EETC's are expensive, and it only makes sense for issuers that are securing high value or high volume assets.

    Using this structure, airlines can tap into this deep market. In these deals, and other smaller privately placed transactions, insurance companies can ensure their chunky orders stick.

    Like EETC's, the EAIV structure can be used on other assets such as engines, parts, etc. Up to $1.5 bn EAIV transactions are expected to close in 2015. Many more non-US EETC's are expected to come to market during 2015, with many more mandates currently being worked on.

  • March 2015

    Avianca closes EETC-like private placement

    Excerpt from Global Transport Finance

    Connecticut-based asset finance specialist Burnham Sterling Securities acted as lead arranger and sole bookrunner in a privately placed two-tranche transaction for Colombian flag carrier Avianca.

    The financing, which closed in November and December 2014, covers two A320-family and a single B-787-8 aircraft.

    Excerpt from Global Transport Finance

    Connecticut-based asset finance specialist Burnham Sterling Securities acted as lead arranger and sole bookrunner in a privately placed two-tranche transaction for Colombian flag carrier Avianca.

    The financing, which closed in November and December 2014, covers two A320-family and a single B-787-8 aircraft.

    The transaction utilised a proprietary enhanced aviation investment vehicle (EAIV), described by the arranger as similar to an enhanced equipment trust certificate (EETC) issue.

    Burnham Sterling, which specialises in private placements, structured the transaction, arranged the rating and placed the transaction with an institutional investor.

    Michael Dickey Morgan, executive managing director at Burnham Sterling, told GTF that the deal features structural enhancements that negate the need for a liquidity facility.

    He adds that pricing on the deal was at least as favourable as was available under a traditional EETC structure or with US Eximbank/European export credit agency-supported debt.

    Burnham Sterling expects to replicate the structure for two additional B-787-8 and several A320-family aircraft in 2015.

    GTF reported in August 2014 that Avianca had issued a request for proposals (RFP) to the market for the US Eximbank-supported financing of four B-787-8 aircraft.

    In early April 2014, Avianca Holdings, together with subsidiary companies Grupo Taca Holdings and Avianca Leasing, priced a USD250 million reopening of its 2020 bonds at a 7.44 per cent in an offering that was more than 3.5-times oversubscribed.

    Proceeds of the issue were earmarked primarily to fleet financing and other general corporate purposes.

    In late December 2013, Bank of America Merrill Lynch, BTG, Citi, Deutsche Bank and UBS were joint bookrunners on the oversubscribed USD409 million initial public offering (IPO) for the carrier.

    The deal was completed in a challenging environment, with the Colombian Colcap down 13 per cent in US dollar terms, and nearly 6 per cent in Colombian peso terms.

    Avianca plans to acquire over 100 aircraft over the next seven years to meet rising passenger traffic in Latin America.

  • March 2015

    The market for private EETCs

    Aviation Finance

    Burnham Sterling acted as lead arranger and sole book runner in a privately placed transaction for Avianca, Colombia's national airline which closed in November and December 2014, Aviation Finance speaks with the investment bank's executive managing director on the market.

    Aviation Finance

    Burnham Sterling acted as lead arranger and sole book runner in a privately placed transaction for Avianca, Colombia's national airline which closed in November and December 2014, Aviation Finance speaks with the investment bank's executive managing director on the market.

    The investment bank Burnham Sterling Securities LLC acted as lead arranger and sole book runner in a privately placed transaction for Avianca, Colombia's national airline which closed in November and December 2014. The Avianca deal covered two A320s and one Boeing 787s and used an Enhanced Aviation Investment Vehicle private EETC Structure ("EAIV"), developed by Burnham Sterling.

    At the time of the announcement Burnham Sterling's executive managing director Michael Dickey Morgan said 'We are experiencing strong and growing demand from new investor sources seeking to finance commercial aircraft. Burnham Sterling is structuring transactions to channel investor demand to meet the needs of airlines. We specialize in private placements which provide access to a growing global investor base, bringing new investors and attractive terms to our clients in the airline industry.' The deal was a first for Avianca who chose to use an EETC structure as it gives them flexibility in their financing.

    Aviation Finance spoke with Burnham Sterling's executive managing director, Mike Dickey Morgan, on the market outlook for aviation assets.

    Could you give your views on the strength of the private placement market for aviation assets in 2015?
    We anticipate strong demand for aircraft-secured transactions in 2015, both from established and new investors.

    There has been much talk of an almost unprecedented demand for capital markets in the past year yet the supply has been somewhat slow. What sort of supply of eetc, abs do you see in 2015? What caused the market to be so slow for EETCs in 2014?
    The industry's overall profitability has been robust, and the focus of many airlines has switched to deleveraging and balance sheet improvement. This means that, for those airlines that need financing, 2015 represents an opportunity to lower financing costs and tap new investors. Burnham Sterling is satisfying this demand through our innovative new financing products which offer flexible new options in a changing marketplace.

    There have been a number of non-US airlines who have issued EETCs this year, and in 2013, do you see this trend strengthening?
    Yes, we closed a number of transactions in 2014 with non-U.S. airlines and see this trend accelerating in 2015.

    What new investors do you see coming to aviation assets? Of these new investors who are the most eager?
    We are introducing many new parties to aviation transactions, including US and non-US institutional investors as well as regional banks and leasing companies worldwide.

    What assets will prove the most popular with capital market investors?
    Burnham Sterling is working to educate investors and broaden the scope of aircraft that can be financed.

    Will investors become increasingly adventurous regarding the assets in which they are willing to invest on the near horizon?
    Burnham Sterling is experiencing strong demand for all kinds of assets. For example, an investor new to turboprops closed our first $165 million financing earlier this month through a partnership with ATR. But even as Burnham Sterling experiences strong demand from its investors, we do not lose focus on placing transactions that are suitable, long term contributors to investors' portfolios.

  • March 2015

    Burnham Sterling completes over $1.5 billion of transactions in 2014

    Airline Economics

    Burnham Sterling Securities, an investment bank specializing in transportation asset finance, has completed more than $1.5 billion of transactions with its clients in 2014. The transactions, totaling $1,541,500,000, included the closing of senior and junior notes, senior loans, and the financing of aircraft on operating leases.

    Airline Economics

    Burnham Sterling Securities, an investment bank specializing in transportation asset finance, has completed more than $1.5 billion of transactions with its clients in 2014. The transactions, totaling $1,541,500,000, included the closing of senior and junior notes, senior loans, and the financing of aircraft on operating leases.

    "Burnham Sterling closed over $1.5 billion of transactions in 2014 and we are especially proud to have introduced so many new investors to our issuer clients," said Michael Dickey Morgan, Executive Managing Director at Burnham Sterling. "It's looking like 2015 will be an even more active year and we currently have more than $500 million of transactions in our pipeline. Our focus is on structuring customized transactions to channel investor demand and efficiently meet the needs of our clients."

    The company's transactions in 2014 involved a mix of new and post-delivery mainline and regional aircraft and were completed on behalf of some of the industry's top airlines, manufacturers and leasing companies, including Delta Air Lines, AerCap and Pratt & Whitney. Investors in the company's transactions include insurance companies, banks, leasing companies, and fund managers.

    "We retained Burnham Sterling as our placement agent on refinancing transactions valued over $600 million in 2014, and we were very pleased with their investor access, extensive market knowledge, and speed in execution," said Andy Nelson, Assistant Treasurer of Delta Air Lines.

    Paul Oechsli, Treasurer of Pratt & Whitney adds "We have a long-standing relationship with Burnham Sterling and once again we retained them as our placement agent in 2014, and they delivered an impressive outcome on almost $200 million of transactions for us. Their innovative solutions delivered significant incremental value to Pratt & Whitney which, without Burnham Sterling, we would not have achieved."

    Burnham Sterling specializes in private placements and other innovative financing solutions with access to a global investor base of new industry participants.

  • October 2012

    Scandinavian Mandates Burnham Sterling

    Source: Flightglobal By Olivier Bonnassies

    Scandinavian Airlines System (SAS) has retained the services again of aircraft advisory company Burnham Sterling for the sourcing of additional Airbus A320s.

    The Scandinavian carrier is undergoing a narrowbody fleet renewal with different aircraft types at its three bases Copenhagen, Stockholm and Oslo.

    Flightglobal By Olivier Bonnassies

    Scandinavian Airlines System (SAS) has retained the services again of aircraft advisory company Burnham Sterling for the sourcing of additional Airbus A320s.

    The Scandinavian carrier is undergoing a narrowbody fleet renewal with different aircraft types at its three bases Copenhagen, Stockholm and Oslo.

    In Copenhagen, SAS will replace its Boeing MD-80 fleets with used A320s. The aircraft are a "bridge solution" until the new A320neo fleet arrives between 2016 and 2019. SAS has already signed operating leases on nine A320s but to complete the entire phase out of its MD-80 fleets the carrier needs five additional aircraft of the type.

    Burnham Sterling sourced seven A320s for SAS last year and the aircraft are being delivered between December 2012 and 2014.

    Founder and managing director Mike Dickey Morgan tells Flightglobal that SAS is again looking at 2005-build or younger aircraft. "The mandate is similar to the one in 2011. SAS is looking for A320s powered with International Aero Engines with four to five years lease terms," he says.

    According to the terms of the mandate, SAS plans to take delivery of the five aircraft between the fourth quarter of 2013 and the early part of 2014.

    "There are more A320s available than there is demand, so there is pressure on lessors to reduce lease rates," says Morgan.

    Burnham Sterling is mainly composed of staff previously at Babcock & Brown and has used an enhanced version of the 737-800 sourcing project for WestJet while at Babcock & Brown to source A320s for SAS.

    "Burnham organized the process to identify sources of A320s new to SAS, evaluate bids using proprietary technology and close transactions with no maintenance reserves."

    SAS has also decided to operate Boeing 737 Next Generation aircraft to replace some MD-80s in Stockholm and 737 Classics in Oslo. The Scandinavian carrier contracted General Electric Commercial Aviation Services (CEGAS) for the lease of 21 737NGs including 12 used 737-700s and nine new 737-800s. The aircraft are being delivered between 2012 and 2014.

    Last month SAS announced an agreement for the sale of four MD-82/87 aircraft as well as option on a further 19 MD-82 and 10 spare engines. If the option is exercised, the additional aircraft and engines will be re-delivered on a gradual basis between the first quarter of 2013 and the first quarter of 2015.

    In total the Scandinavian carrier will have 21 737NGs and 15 A320s entering services through 2014. SAS has 30 A320neos as well as 11 options for delivery after 2016.

  • January 2012

    AMR's Vedder Price-organized Ad Hoc Group Hires Burnham as Financial Advisor

    Flightglobal Debt Wire

    An ad hoc group of AMR Corp's ETC and PTC holders have hired Burnham Sterling as financial advisor, said two sources familiar with the matter.

    The advisor will assist the consortium in restructuring its large portfolio of aircraft currently on lease or loan to the parent of American Airlines, the sources noted.

    Flightglobal Debt Wire

    An ad hoc group of AMR Corp's ETC and PTC holders have hired Burnham Sterling as financial advisor, said two sources familiar with the matter.

    The advisor will assist the consortium in restructuring its large portfolio of aircraft currently on lease or loan to the parent of American Airlines, the sources noted.

    As reported, this specific group formed last month under counsel from Vedder Price and is being led by Trilogy Capital. There is a separate group also consisting of ETC and PTC holders that is being advised by Bingham McCutchen.

    Since AMR filed for Chapter 11 protection on 29 November, the legacy carrier has sent out proposals to creditors of the individual aircraft to restructure terms of the aircraft leases on the planes backing certain ETC and PTC transactions.

    The debtor's USD 460m 6.25% convertible senior notes due 2014 last changed hands at 22.25 to yield 79.416%, according to MarketAxess.

    A representative from Burnham Sterling declined to comment.

  • Show all articles

1SAFE® means Structured Aircraft Financing Enhancement

2EAIV® means Enhanced Aviation Investment Vehicle

Burnham Sterling Securities, LLC ("Burnham Sterling Securities") is an SEC registered broker/dealer, FINRA member firm and member of SIPC (for details, please see www.sipc.org). All securities related activities and/or securities transactions are conducted solely through Burnham Sterling Securities. Burnham Sterling & Company LLC ("Burnham Sterling"), an affiliate under common control of Burnham Sterling Securities, is an unregistered entity providing financial advisory services. * No participant in any loan, lease or note transaction has reported a delayed or missed payment to Burnham Sterling.

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