and Process Fiona Leung Director Transaction Management Overview Department Core functions and responsibilities Commercia l New business Relationships with airline clients and manufacturers ID: 488226
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Slide1
Transaction Documents
and Process
Fiona LeungDirector, Transaction ManagementSlide2
OverviewSlide3
Department
Core functions and responsibilities
Commercia
l
New business
Relationships with airline clients and manufacturers
End of lease remarketing programmes
Debt and equity funding
Relationships with capital providers
End of
lease refinancing
Due diligence on potential lessees, Periodic reviews on lesseesCounterparty and Asset ratingsManagement of Investment Committee and Board Approval processes
Technical input to transaction negotiationDeliveries, transitions, technical data and inspectionsRelationship with manufacturers, lessee technical and maintenance providers
Structuring, negotiation, documentation and closingPost-closing portfolio management Relationships with lessees, capital providers and legal advisors
Regulatory compliance and reporting Financial modelling, statutory and management reportingTreasury / Financial planning and forecasting/ Tax Structuring
Corporate Governance and Company SecretarialHuman Resources Business Information Systems and ICT
Capital Markets
Risk Management
Technical
TransactionManagement
Finance, Treasuryand Tax
[Operations]
Lessor Operating PlatformSlide4
Controls and Approvals
Deal investment
process – from origination to lease management
What type of Deals? - Lessor Platform Strategy
Leasing, Sale and Lease-backs (or “SLBs”)
Aircraft Trading (portfolio acquisitions and aircraft sales)
Manufacturer Orders
Controls and ApprovalsCommercial CommitteeInvestment CommitteeBoard ApprovalTransaction Approval CommitteePortfolio / Transaction ManagementOrigination and assessmentCommercial CommitteeLetter of IntentDue diligenceInvestment Committee/ BoardDocumentsTransaction Approval CommitteeFunding and deliveryManagementSlide5
Negotiation Point
Teams involved
Asset and Lessee
Senior
management, Commercial
Lease term
Commercial, Capital Markets, Treasury
RentCommercial, Capital Markets, TreasuryMaintenance ReservesCash or Letter of CreditPBH agreementTechnical, CommercialSecurity DepositCommercial, Risk ManagementStructure and registrationTransaction Management, Tax
Return conditions
Technical, Commercial
Insurance
Commercial, Risk Management
PDP Financing
Commercial, Capital Markets, Treasury
Negotiating the LOISlide6
Negotiation Point
Teams involved
Subleasing
Transaction Management,
Risk Management
Engine pooling
Transaction Management, Technical
Events of defaultTransaction Management, external counselDefault interest rateTransaction Management, TreasuryCovenantsTransaction ManagementIndemnitiesTransaction Management, external counselConditions precedent
Transaction
Management, local external counsel
Insurance
Transaction Management, insurance advisor
Lease assignment
Transaction ManagementGoverning law and forum
Transaction Management, local external counselNegotiating the LeaseSlide7
Managing the Lease Cycle
Lease Management
Pre-Delivery
Inspection of Aircraft and the Records and Check Maintenance Program
Lease Term
Acceptance and Delivery
Physical Inspection
Rent and MR invoicingCheck Utilization Maintenance Status Reports Physical Inspections, Lease Management, Risk Management and InsuranceStart Remarketing (9-18) months If No Lease Extension - Acceptance and RedeliveryPhysical Inspection Compliance with Lease Return Conditions Calculate Return CompensationStorage/Insurance (if needed)Selling or Releasing AircraftTransitionEnd of Lease Term