FOR OUR FINANCIAL INSTITUTIONS
With decades of direct lending experience with major banks and commercial finance companies, we realize that most financial institutions are not familiar with helicopters. As a financial institution today, it is becoming more and more challenging to keep fully informed and abreast of all developing information on every class of equipment that you are involved with.
After all, helicopters are complex ... they are expensive to acquire and expensive to operate. And most financial institutions don't fully understand their incredible capabilities and their high value retention. Unlike most assets that banks finance or lease - especially mobile assets - helicopters have significant value retention when properly maintained.
At Avstar Finance, our business is helicopter finance. With over 150 years of helicopter experience ranging from financing, leasing, selling, flying and operating major helicopter entities, we understand the helicopter business and we are committed to structuring transactions that mutually beneficial to the operator as well as the financial institution.
To provide incremental customers for you, assist you in the underwriting process, and develop monitoring and control procedures for your portfolio management throughout the entire term of the transaction, Avstar Finance has developed and refined our proprietary LifeCycle Monitoring Program in modular segments, each designed and tailored individually or collectively to meet your portfolio needs.
The Pre-Funding module - comprised of underwriting assistance, collateral verification and valuations - establishes the baseline for Avstar Finance's LifeCycle Monitoring Program.
To assist your underwriting team to better understand the helicopter as collateral, the industry, and the client's specific utilization, the Avstar Finance team will provide for you:
- In depth product knowledge
- Cost-of-ownership analysis including an indicative budget for your cash flow analysis purposes reflecting hourly cost of operating the helicopter, annual costs (including typical fixed costs), and yearly cash flow forecast
- Assistance in establishing the appropriate maintenance, operations, and return conditions (if a lease) to optimize your asset realization at the end of the term, or in event of a premature loan maturity
CONFORMITY REVIEW & COLLATERAL VERIFICATION
The next phase of the Pre-Funding Module features an on-site, in-depth verification review of the helicopter, its records, and overall condition; validates the helicopter description, specification sheet, component runs, and much more, are as represented; and all records are in compliance with the applicable laws and regulations. Having conducted and/or over-seen more than 2,000 pre and post-funding inspections, Avstar Finance utilizes FAA-certified airframe & power-plant professionals familiar with the specific helicopter model to provide the most in-depth product review.
Based on Avstar Finance's Conformity Review and Collateral Verification Report, a comprehensive valuation report prepared by our aviation team will provide current and future market value as well as liquidation value projections based on your transaction's requirements for mission usage, geography, annual utilization, and maintenance requirements.
Alternatively, a less comprehensive desktop version is available in instances where an on-site Conformity Review & Collateral Verification has not been preformed.
COMPLIANCE & MONITORING MODULE
With our depth of aviation experience as a lender/lessor as well as helicopter operator, our team can identify issues before they become problems, and recommend knowledge-based solutions to address the specific situation. Throughout the term of your transaction, the LifeCycle Monitoring Program will provide maintenance monitoring, lease condition compliance, and updated current and future valuations. Although comprehensive in nature with full supporting documentation, a 1-to-2 page summary will be provided throughout the term of the transaction outlining transaction compliance stipulated in your documentation at your selected intervals.
Scheduled to coincide with the helicopter's annual inspection protocol, AvStar Finance's aviation team - with specific knowledge on the helicopter model - will conduct an on-site review of the helicopter, its condition, maintenance, and records each year to verify the helicopter is being maintained in accordance with your transaction requirements.
LEASE CONDITION MONITORING
In addition to validating helicopter maintenance, the annual on-site review will incorporate a compliance examination to verify that the helicopter and its operations are in compliance with all documentation requirements.
Utilizing the maintenance and condition monitoring reports, Avstar Finance will provide current and future market value as well as liquidation value projections will be updated annually throughout the transaction term and bench marked against the original baseline at time of funding.
RESIDUAL REALIZATION MODULE
At the end of the lease term, or in the event of a premature termination of your loan or lease transaction, the Avstar Finance team - with over $1 billion in aircraft recovered and refurbished coupled with more than 1,500 fixed wing aircraft an helicopters sold - can provide the reclamation, refurbishment, and resale/re-lease services to optimize your transaction's economics.