Carlyle closes AASET 2024-1 single tranche ABS

Carlyle Aviation has closed its $428.051 million single tranche asset backed securitisation (ABS) transaction AASET 2-24-1, the fourteenth iteration of its AASET series, which marks the reopening of the aviation ABS market after a more than two year hiatus. AASET 2024-1 comprises $428.051 million Class A-1 notes to be secured on a portfolio of 12 aircraft on lease to 11 lessees. The notes, rated A by KBRA, have at loan-to-value ratio of 65% with a final maturity date of May 2049, with an anticipated repayment date of May 2031. The A-1 tranche was offered at par with a 6.26% coupon and 205 basis point spready to US Treasuries. The documents permit the addition of an A-2 tranche at a later date with some conditions. Goldman Sachs was sole structuring agent, global coordinator and joint lead bookrunner. Phoenix American was the managing agent, with mba as the maintenance provider. Appraisers are Avitas, Collateral Verification and mba. Milbank was the issuer counsel The portfolio consists of four A321-200NX, two 737 MAX 8s, two A320-200neo, one A321-200 and one A320-200, as well as one A330-900 and one A350-900. The weighted average remaining term of the initial lease contracts is approximately 9.2 years. The portfolio has an initial value of approximately $658.5 million. The structure includes a nine month liquidity facility provided by Natixis. There are a few issues highlighted with the aircraft portfolio – one lessee SAS remains in bankruptcy protection, while two lessees have outstanding deferral payments.  One aircraft – the MAX 8 has not yet been delivered by Boeing, three aircraft are not yet owned by the servicer and two aircraft have PW1100 engines. However, the latter aircraft with the GTF engines have not been subject to recall, according to the KBRA pre-sale document. The Carlyle Aviation team were pleased with the reception to the deal. “We are pleased with the outcome of this transaction, which marks Carlyle Aviation Partners’ tenth year accessing the ABS markets and signals the re-opening of the aircraft ABS market after two years of inactivity,” said William Hoffman, chairman and co-founder of Carlyle Aviation Partners. Javier Meireles, chief financial and operating officer of Carlyle Aviation, noted that the company’s “strong brand and track-record in the space contributed to the transaction’s success”.