Lee & Ko represented Korea Investment Management Co., Ltd. (“KIM”), in its capacity as asset management company of the collective investment vehicle through which the Korean investors indirectly made an investment in a portfolio of 20 aircraft (“Project Labrador”).
In order to finance purchase of the aircraft portfolio, Labrador Aviation Finance Limited, an exempted orphan SPC incorporated under the laws of Bermuda with a tax residency in Ireland (“Labrador”) issued asset-backed securities worth USD $709 million dollars in addition to E Certificates worth USD $250 million dollars. The Korean investors purchased 91% of the E Certificates for a consideration of USD $227.5 million dollars and, in exchange, were given the right to appoint 4 out of 5 directors of Labrador. Lee & Ko advised KIM and the Korean investors on all aspects of the transaction from start to finish, including due diligence of the lease agreements of each aircraft, providing advice on all regulatory and compliance issues and handling the closing.
This transaction marks the very first investment ever made by any Korean investor in an aircraft portfolio, and also the first investment ever made by any Korean investor in E Certificates, which prompted Airline Economics to select this transaction as the Editor’s Deal of the Year for 2017. This transaction will likely serve as a standard for similar investments in the future.