Aircraft, Shipping & Transportation

Aircraft, Shipping & TransportationShaun Morris - Managing Partner, Appleby

Stephen Rossiter – Associate, Conyers Dill & Pearman

James Watlington – Partner, Alexanders

Steve Woodward – Director, KPMG

Bermuda

• Tax neutral

• Appropriate legislation

• Established legal framework

• Politically stable

• Strong infrastructure

Aircraft

• Bermuda Department of Civil Aviation (BDCA)

• Register of Aircraft (est. 1931)– nearly 400 aircraft registered

• Aircraft and Aircraft Engines Mortgages Register

Aircraft

• Recent transactions:– Aircastle $786m term debt facility: 28

aircraft– Babcock & Brown Air $773m IPO and

$1bn warehouse facility: 22 aircraft– AerCap $1bn securitization 30 new A320

aircraft

Shipping

• Established maritime history• Merchant Shipping Act 2002• Register of Ships (est. 1789)

– Over 120 vessels and in excess of 6.5m gross tonnes

• Shipping companies:– Arlington Tankers (NYSE)– TBS International (NASDAQ)– LNG shipping groups

Panel Discussion

Aircraft, Shipping and Transportation

Why is Bermuda a suitable jurisdiction for ship and aircraft registration and finance structures ?

Aircraft, Shipping and Transportation

What are the benefits of registering aircraft or ships in Bermuda ?

Aircraft, Shipping and Transportation

What kind of finance structures are typically used ?

Aircraft, Shipping and Transportation

When considering security, how are lenders rights protected ?