It has been rather a busy week for GA Telesis, the Fort Lauderdale-based aerospace logistics, MRO and asset-financing company having announced two major business-expansion initiatives on two consecutive days this week.
On Aug. 2, GA Telesis announced it was launching a specialized finance unit, called Structured Credit Products (SCP), to focus on structured financial solutions for airline, MRO, and OEM customers.
SCP, which will be headed by Stuart Weinroth, initially will focus on expanding GA Telesis’ existing inventory-leasing activities, a service category that GA Telesis says it pioneered to address the increasing capital needs of the airline sector to support new-aircraft deliveries.
The parent company will provide SCP with a three-year capital allocation of $1 billion to enhance the inventory-leasing services and products that GA Telesis offers airlines.
According to GA Telesis, SCP will focus on spare parts for the Boeing 787 and 737 MAX, as well as the Airbus A350 and A320neo aircraft families, but it also will consider lease opportunities for equipment for other aircraft types.
“This is an unprecedented time in the history of aviation where all of the aircraft manufacturers are delivering new technology aircraft and engines across four aircraft families simultaneously,” says Abdol Moabery, GA Telesis president and CEO.
“With over 8,700 new-technology 787, 737 MAX, A350, and A320neo aircraft in the current back-log, we are prepared to help our airline customers by providing them a customized financing solution to meet their inventory provisioning needs,” adds Moabery.
GA Telesis says it already has closed and has financing commitments for more than $200 million of inventory leases and expects to close more than $800 million of additional inventory leases over the next 36 months.
Looking beyond its initial inventory-leasing focus, SCP also will explore other aviation-finance products, including originated secured lending, trading in public and private debt, and investments in other aviation-related financial instruments.
A day previously, on Aug. 1, GA Telesis and Tokyo Century Corp., which owns 20% of the Fort Lauderdale company’s shares, announced they were launching a new-technology engine financing initiative focusing on a specific group of latest-technology turbofans.
The joint venture’s target portfolio will include General Electric GEnx, Rolls-Royce Trent 1000 and Trent XWB, Pratt & Whitney geared turbofan and CFM International LEAP engines.
According to GA Telesis, the joint initiative will enhance GA Telesis’ existing engine-leasing business by providing a more competitive cost of capital for longer-term and more structured engine-financing transactions.
GA Telesis and Tokyo Century aim for their new joint venture to originate and close $1 billion in new-technology engine transactions over the next 24 months.
“This is an unprecedented time in the history of aviation where each [major commercial] engine manufacturer is delivering a new-technology engine simultaneously,” notes Moabery.
“We are very enthusiastic about the market’s demand for leasing products such as this and we are committed to growing this,” says says Koichi Nakajima, deputy president, director and executive officer of Tokyo Century Corp.