Upload
others
View
8
Download
0
Embed Size (px)
Citation preview
TWIN OTTER INVESTMENT OPPORTUNITY
Twin Engine Aircraft Short Take Off and Landing (STOL)
Capabilities High Rate of Climb Suitable for Cargo 19 Passengers Seats Floats, Skis or Tricycle Landing Gear FittingsTherefore, Twin Otter Airplane is in demand
worldwide.
www.Aeroproc.com
AIRCRAFT OPERATING LEASE CYCLE
- Pre-Owned Twin Otter Aircraft is
Income Producing Assets.
- Lease payments are an annuity
stream and upon maturity date of
the lease, the asset may be re-sold,
re-leased, or Re-life the airframe.
Re-Lease
Re-Sell
Re-Life
www.Aeroproc.com
At the end of 3-5 Years Lease
Right Investment Aeroproc Goal
Superior operational capability with a large customer base.
Unlimited asset life through on-going life extension programs.
Limited supply ensure asset value remains high.
Large customer base results in high on-going demand.
One of the few aircraft that has appreciated over time and continues to do so.
Virtually no residual value risk at the end of lease term.
Experts in lease management as well as aircraft maintenance.
Works closely with Twin Otter parts manufacture.
10 year, 100 aircraft, $300M portfolio goal
Open to discuss partnership structure with Investor(s)
www.Aeroproc.com
www.Aeroproc.com
• 12% annual return with relatively little up-front investment size
• Instant return - 30 days after start of lease • Option: 50/50 profit sharing after end of
lease and asset disposition
Profit Sharing after end of lease
50%Investor50%Aeroproc
www.Aeroproc.com
Investor purchased $2.8 M USD - $3.5 M USD aircraft, AEROPROC will be managing and maintaining investor’s
asset for 3-5 years term by leasing it to customer.---------------------------------------------------- 1) AEROPROC has close group of “A” credit lease customers
and manages the lease over 3-5 years at 1.25% value of the aircraft purchased monthly.
2) AEROPROC pays back to investor 1% value of the aircraft purchased per month over 3 - 5 years .
3) At the end of lease term the aircraft is either sold and the proceed are split 50/50 with Investor and Aeroproc or re-leased for another 3 - 5 years term.
www.Aeroproc.com
INVESTOR
5 Year Term Loan
$2.8 M
Monthly payment of $28K over 60 month
Leases @ $35k/mofor 5 years
AEROPROC (Lessor)
OPERATOR(Lessee)
Aircraft Return to Lessor at the end of
lease
www.Aeroproc.com
RISK MITIGATION
Asset residual values below assumption Will use value projection confidence bands
Aeroproc missed payment/credit default Use advanced deposits in lease Agreement/Bond
Customer missed payment/credit default Use advanced deposits in Lease Agreement/Bond
Significant maintenance problems Aeroproc to manage lease / Maintenance inspections
Aircraft accident Refer to Lessee Insurance Coverage
Aircraft seizure Aircraft Deregistration Process
Dispute on aircraft return condition Conduct audit/refer to maintenance reserve terms
Need for legal proceedings Lease Agreement
Customer wants early out Lease Agreement/Breakage Fees
Customer bankruptcy Audits/Remarketing Option
Customer does not fulfill maintenance Audits/Lease Agreement
www.Aeroproc.com