PK AirFinance Issues Inaugural $622 Million Aviation Loan ABS
11 July 2024 - 4:12PM
PK AirFinance (“PK”), a leading aviation lending platform and
affiliate of Apollo (NYSE: APO), has closed its inaugural aircraft
loan asset-backed securitization: PK ALIFT LOAN FUNDING 3 Series
2024-1 (“PKAIR 2024-1”). PKAIR 2024-1 issued over $622 million of
Notes that will be used to acquire the rights to the economics of a
portfolio of aviation loans via the acquisition a 100% series
limited partnership interest in a PK-managed origination vehicle.
PK ALIFT 2024-1 marks the first commercial aircraft
loan ABS issuance in 2024 and represents the first1 AAA-rated
aviation ABS public issuance in more than 20 years, which PK
attributes to the portfolio asset quality as well as its management
team and servicing platform. PKALIFT 2024-1 was rated by both KBRA
and DBRS.
The oversubscribed issuance saw broad participation
from capital markets participants, including third-party insurers.
Notes are secured by the proceeds of a portfolio of 122
senior-secured aviation loans across 70 narrowbody aircraft, 6
widebody aircraft, 30 freighter aircraft, 7 engines and 9 regional
jet aircraft spanning 52 unique obligors.
“PK is excited to close this strategically
significant transaction which diversifies our financing sources and
supports our integrated aviation platform’s demand for directly
originated aviation assets,” said Gary Rothschild, CEO of PK
AirFinance. “This transaction – supported by a AAA rating – is a
testament to PK’s demonstrated track record within aviation
finance, the strength and diversity of our collateral pool and our
comprehensive servicing capabilities. We believe the PKAIR shelf
will further enhance our ability to provide flexible, competitive
financings to our airline and lessor clients over the long
term.”
Apollo Global Solutions, LLC served as sole lead
arranger and Redding Ridge Asset Management acted as a structuring
agent on the transaction. BNP Paribas, Mizuho Americas, RBC and
Apollo Global Solutions served as Joint Lead Bookrunners. Milbank
LLP served as issuer counsel and Vedder Price acted as lender
counsel.
About PK Airfinance
PK Airfinance is a premier specialized aircraft and
aircraft engine lending business with deep expertise in the
aviation finance sector. Its comprehensive origination,
underwriting, structuring and syndication capabilities are
delivered by a team of experienced professionals, whose extensive
experience in varied products and geographies was built over
several decades and industry cycles. To learn more, please visit
https://www.apollopkairfinance.com/.
Contacts
Noah GunnGlobal Head of Investor
Relations212-822-0540IR@apollo.com
Joanna RoseGlobal Head of Corporate
Communications212-822-0491Communications@apollo.com
________________________1 Excluding select
insurance-backed issuances that received AAA-ratings by virtue of
insuring certain credit risk