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IAT Acquires Nine Aircraft from Zephyrus Aviation Capital

IAT Expands Fleet with Acquisition of Nine Aircraft from Zephyrus Aviation Capital
IAT Leasing Limited (IAT) has significantly broadened its global presence in the aircraft leasing sector through the acquisition of nine narrow-body aircraft from Zephyrus Aviation Capital. The portfolio comprises a blend of Boeing and Airbus models, currently leased to eight airline operators spanning North America, Europe, and Asia. This strategic purchase enhances IAT’s footprint across multiple key aviation markets.
The transaction was conducted on behalf of funds managed by Blue Owl Capital, with financing secured via a senior secured loan facility arranged by PK AirFinance. Magnus Stephensen, Chairman of IAT Leasing, emphasized the company’s commitment to expanding a globally diversified portfolio of in-service narrow-body aircraft. He noted that the acquired assets are leased to well-established operators across various jurisdictions, aligning with IAT’s strategy to generate stable, long-term cash flows supported by high-quality credit counterparties.
Industry Context and Market Challenges
While the acquisition strengthens IAT’s position in the competitive global leasing market and bolsters Blue Owl’s aviation portfolio, it occurs amid ongoing industry challenges. Market sentiment remains cautious, with analysts from Jefferies highlighting persistent concerns regarding the pace of recovery and investment appetite in aviation assets. The sector continues to face delays in aircraft deliveries, prompting some airlines to consider legal action—a development that could have repercussions for both lessors and operators.
In this environment, competitors may attempt to leverage operational disruptions linked to IAT’s acquisition to consolidate their market share. Within Canada, where IAT maintains a presence, the business aviation market is growing but contends with obstacles such as the luxury tax, which may influence buyer behavior and leasing demand.
Ivan Zinn, Head of Alternative Credit at Blue Owl, expressed enthusiasm about the transaction, underscoring the team’s ability to manage complex cross-geographical and multi-operator arrangements to deliver a comprehensive capital solution to Zephyrus Aviation Capital. Marijn Kappen, Chief Commercial Officer at Zephyrus Aviation Capital, praised the efficiency and timeliness of the deal, noting that it fulfilled a significant portion of the main aviation fund’s objectives for investors.
Legal advisory for the transaction was provided by Pillsbury for IAT and Blue Owl, with Vedder Price representing Zephyrus and PK AirFinance. Mason Hayes & Curran served as Irish counsel to IAT, while KPMG offered tax advisory services.
As IAT integrates these assets, the company faces the challenge of navigating evolving market dynamics and industry uncertainties to fully capitalize on its expanded portfolio.

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