Carlyle taps ABS market with a single tranche deal

Carlyle Aviation is in the market with a single tranche asset backed securitisation (ABS) – the fourteenth iteration of its AASET series. 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 documents permit the addition of an A-2 tranche at a later date with some conditions. Goldman Sachs is leading the deal as sole structuring agent, global coordinator and joint lead bookrunner. Phoenix American is the managing agent, with mba as the maintenance provider. Appraisers are Avitas, Collateral Verification and mba. 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 document.