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Bain Capital Credit, Titan Aircraft Leasing to Form $1B Joint Venture

December 19, 2019, 07:25 AM
Filed Under: Aircraft

Titan Aviation Holdings, Inc., a subsidiary of Atlas Air Worldwide Holdings, Inc., and Bain Capital Credit, LP announced they have entered into an agreement to form a joint venture to develop a diversified freighter aircraft leasing portfolio with an anticipated value of approximately $1 billion. The long-term joint venture aims to capitalize on demand for cargo aircraft, underpinned by robust e-commerce and express market growth.

Under the joint venture, Bain and Titan have committed to provide $360 million and $40 million of equity capital, respectively, which may be supplemented with additional commitments over time, to acquire aircraft over the next several years. Titan will also provide aircraft- and lease-management services to the venture.

Since its inception in 2009, Titan has grown to become the third largest freighter lessor globally by fleet value with over 30 aircraft and book value of over $1.5 billion.

“We are delighted to team up with Bain,” said Titan President and Chief Executive Officer Michael T. Steen. “Both Bain and Titan share the same vision and investment strategy. Together, we are extremely well-positioned for further opportunities in the growing freighter space.”

“We have long admired Atlas and Titan as a best-in-class industry leader and are excited to join forces for a constructive and lasting partnership,” said Matt Evans, a Director at Bain Capital Credit. “We look forward to supporting the company’s next phase of growth as it continues to leverage its deep relationships within the global airfreight community.”

“We continue to leverage the scale and scope of our operations, and our leadership in global aviation outsourcing,” said Atlas Air Worldwide Chairman and Chief Executive Officer William J. Flynn. “We are executing the right strategies, including opportunities like this to grow our Titan dry-leasing business.

“We were impressed with Bain’s knowledge about our industry and its ability to join with us as we look to achieve our mutual goals. We appreciate Bain’s confidence in our long-term growth strategy, and we value its desire to partner with us.”

BNP Paribas acted as exclusive financial advisor and placement agent to Titan in the transaction, and Pillsbury Winthrop Shaw Pittman LLP acted as its legal advisor. Kirkland & Ellis LLP acted as Bain’s legal advisor in the transaction.

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