SPACs and Aviation and Aircraft Finance

The commercial aviation industry is among the global industries which have undoubtedly faced the most challenges as a result of the COVID-19 global pandemic. A sharp, sudden decline in passenger numbers and demand for flights has resulted in an unprecedented and dramatic fall in aircraft evaluations. However, as with all cycles, the bottom of the curve presents attractive opportunities for investors. With the rate of roll-out of vaccines rising across the globe and the industry taking the lead on cutting edge solutions to re-open the skies, such as vaccine passports, many, including some of the world’s largest leasing companies, have been on record suggesting we may have seen the worst. As a result, interest in investing is now increasing with some high profile investors whom have already established platforms ready to deploy cash. During these uncertain times, one fundraising vehicle that has grown in prominence and dominated international financial headlines is the Special Purpose Acquisition Company or SPAC.

As market leaders for offshore legal, Walkers have advised on numerous SPAC transactions and aviation finance, providing us with a birds-eye view of market trends. In this paper we provide an overview of SPACs, and discuss how this structure can be utilised by investors in aviation and aircraft finance transactions.

 

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