Aircraft Capital Trust (IPO)

GE-Backed Trust Said to Seek $700 Million in Singapore

By Joyce Koh and Fox Hu - Oct 22, 2012 4:39 PM GMT+0800

Aircraft Capital Trust, a business trust backed by General Electric Co. (GE), is seeking about $700 million in a Singapore initial public offering, said three people with knowledge of the matter.

The company plans to start trading by next month and may offer a yield of 8 percent to 9 percent, the people said, asking not to be identified as the process is private. The trust will be backed by planes from GE’s aircraft leasing unit, which will also own a minority stake in the company, they said.

http://www.bloomberg.com/news/2012-10-22...apore.html [Full Article]

(23-10-2012, 10:55 AM)Nick Wrote: GE-Backed Trust Said to Seek $700 Million in Singapore

By Joyce Koh and Fox Hu - Oct 22, 2012 4:39 PM GMT+0800

Aircraft Capital Trust, a business trust backed by General Electric Co. (GE), is seeking about $700 million in a Singapore initial public offering, said three people with knowledge of the matter.

The company plans to start trading by next month and may offer a yield of 8 percent to 9 percent, the people said, asking not to be identified as the process is private. The trust will be backed by planes from GE’s aircraft leasing unit, which will also own a minority stake in the company, they said.

http://www.bloomberg.com/news/2012-10-22...apore.html [Full Article]

Interesting! First time I'm coming across such a business trust.

(23-10-2012, 06:46 PM)FFNow Wrote:

(23-10-2012, 10:55 AM)Nick Wrote: GE-Backed Trust Said to Seek $700 Million in Singapore

By Joyce Koh and Fox Hu - Oct 22, 2012 4:39 PM GMT+0800

Aircraft Capital Trust, a business trust backed by General Electric Co. (GE), is seeking about $700 million in a Singapore initial public offering, said three people with knowledge of the matter.

The company plans to start trading by next month and may offer a yield of 8 percent to 9 percent, the people said, asking not to be identified as the process is private. The trust will be backed by planes from GE’s aircraft leasing unit, which will also own a minority stake in the company, they said.

http://www.bloomberg.com/news/2012-10-22...apore.html [Full Article]

Interesting! First time I'm coming across such a business trust.

Actually, they did attempt to launch an IPO back in Nov 2007 !

http://www.reuters.com/article/2007/11/1...9820071114 [Article]

Quote:The company plans to start trading by next month and may offer a yield of 8 percent to 9 percent, the people said, asking not to be identified as the process is private.

Planes typically have a 20-year life, that means 5% of the yield is a return of capital. So an 8-9% yield is really a 3-4% yield, and your counterparties are hardly the strongest corporations in the world...

(23-10-2012, 07:53 PM)d.o.g. Wrote:

Quote:The company plans to start trading by next month and may offer a yield of 8 percent to 9 percent, the people said, asking not to be identified as the process is private.

Planes typically have a 20-year life, that means 5% of the yield is a return of capital. So an 8-9% yield is really a 3-4% yield, and your counterparties are hardly the strongest corporations in the world...

If investors are lucky, the Trust might only pay out its earnings (as opposed to its total cash-flow) ? Guess we have to wait and see how they define distributable income. If they are following FSLT pre-crisis model, then

At the moment, the closest SGX listed peer is GIL with its 2 aircraft on lease till Apr 2013.