PK AirFinance Closes Major Aviation ABS Transaction
NEW YORK, PK AirFinance, a notable aviation lending entity and part of Apollo, has recently finalized its second aircraft loan asset-backed securitization (ABS) of 2025, named PK ALIFT LOAN FUNDING 7 Series 2025-2. This transaction marks a significant achievement for the company, with the issuance of approximately $827 million aimed at expanding their portfolio of aviation loans.
Details of the Transaction
PKAIR 2025-2 stands out as PK's largest ABS deal to date, contributing to a cumulative total of around $2.8 billion in ABS transactions issued over the past fifteen months. Remarkably, this issuance is the first of its kind in more than two decades to receive a 'Big Three' AAA rating. Fitch has awarded 'AAA' ratings to the A tranche and 'AA' ratings to the B tranche, showcasing the robustness of this issuance.
Investor Participation and Security Details
The ABS offering was fully subscribed, attracting a wide array of institutional investors. The notes are backed by a diverse portfolio encompassing 107 senior-secured aviation loans which involve 42 unique obligors, providing first priority liens on approximately $1.4 billion worth of underlying metal value.
Comments from the Leadership
Gary Rothschild, CEO of PK AirFinance, expressed his enthusiasm regarding this milestone: "Closing on 2025-2, our second issuance of the year, and the largest loan ABS transaction thus far, is thrilling for us. The first-ever Fitch AAA rating in Aviation serves as a pivotal moment for our PKAIR program, highlighting our strong track record in aviation finance. We are committed to offering flexible and competitive financing solutions to our airline and lessor clients for years to come."
Involvement of Rating Agencies and Partners
The issuance has garnered ratings from several accomplished agencies, including Fitch, KBRA, and DBRS. In facilitating this transaction, Redding Ridge Asset Management, BNP Paribas, and Mizuho Americas served as co-structuring agents, while RBC Capital Markets, SMBC Nikko, and Apollo Global Securities acted as Joint Bookrunners. Additional co-managers included Wells Fargo Securities, PNC Capital Markets LLC, Blackstone Securities Partners L.P., and ATLAS SP.
About PK AirFinance
PK AirFinance is recognized as a specialized financing provider for aircraft and aircraft engines, boasting extensive knowledge in aviation finance. The company's team comprises experienced professionals who excel in origination, underwriting, structuring, and syndication, ensuring a comprehensive approach to their operations within the aviation sector. The breadth of their expertise has been carefully cultivated over decades, adapting through various industry cycles.
Contact Information
If you have inquiries regarding PK AirFinance, you can reach out to Noah Gunn, the Global Head of Investor Relations at 212-822-0540 or via email at IR@apollo.com. For corporate communications queries, Joanna Rose, the Global Head, can be contacted at 212-822-0491 or through email at Communications@apollo.com.
Frequently Asked Questions
What is the significance of the $827 million ABS transaction?
This issuance is significant as it is the largest ABS transaction for PK AirFinance, helping to strengthen their aviation loan portfolio and providing greater financing options.
Who are the key players involved in this transaction?
The transaction involved multiple entities including Redding Ridge Asset Management, BNP Paribas, and Mizuho Americas as co-structuring agents, along with RBC Capital Markets as Joint Bookrunners.
What ratings did the ABS achieve?
The ABS achieved notable ratings, with Fitch providing an 'AAA' rating for the A tranche and 'AA' for the B tranche, emphasizing the transaction's strength.
How does PK AirFinance support its clients?
PK AirFinance provides flexible and competitive financing solutions tailored for airlines and lessor clients, backed by a strong track record in aviation finance.
How can I learn more about PK AirFinance?
To learn more about PK AirFinance, visit their official website or contact their investor relations team for detailed information regarding their services and offerings.
