Paul Hastings Advises HSBC and Deutsche Bank in Yen 40 billion Passenger Ticket Receivables Securitisation

February 09, 2007

Paul Hastings Advises HSBC and Deutsche Bank in Yen 40 billion Passenger Ticket Receivables Securitisation

Hong Kong (February 9, 2007) - Paul, Hastings, Janofsky & Walker (Paul Hastings), a leading international law firm, has represented HSBC as a joint arranger and Deutsche Bank as trustee and transaction administrator in a ¥40 billion (US$331 million) passenger ticket receivables securitisation for Korean Air Lines ("KAL").

The transaction, which closed on 1 February, is backed by Yen receivables arising from the sale in Japan of airline tickets by KAL on their routes between Japan and Korea. The floating rate Notes issued by KAL Japan ABS 3 Cayman Limited are supported by a credit facility from The Korea Development Bank.

Neil Campbell, partner and co-head of Paul Hastings' Asian securitisation practice commented, "We are very pleased to have advised on a third future flow securitisation for KAL. We had to adapt the structures that we used in KAL's 2003 and 2005 securitisation deals but still completed the transaction in under four months."

A team of English and Japanese qualified lawyers from Paul Hastings securitisation groups in the Hong Kong and Tokyo offices worked on the deal. The team, led by Neil Campbell, included partners Nori Hashimoto and Alex Regan and associates Junji Shiraki, Michelle Shek, Heidi Pang and Frankie Tong.

Paul Hastings Janofsky & Walker, founded in 1951, is a leading international law firm with over 1,100 lawyers in 18 offices. The firm serves a diverse client base including many of the top financial institutions and Fortune 500 companies, supports clients in all of their legal needs and offers deep capabilities in Banking and Finance, Capital Markets, Corporate/M+A, Litigation and Dispute Resolution, Intellectual Property, Project Finance, Investment Management, Real Estate, Labor and Employment and Tax Advisory Services. For additional information, please visit our website at www.paulhastings.com.