Direct lending has become a popular avenue for lessors and other major aviation companies looking to assist their clients and customers with financing. GA Telesis (GAT) and Tokyo Century (TC) have joined together to offer a new lending platform called HALO AirFinance (HALO).
HALO will serve as the “exclusive debt origination channel for GAT and TC”, say the joint venture partners, which will focus on secured direct lending to airlines, lessors, and investors, covering the collateral spectrum from new to mid-life aircraft.
According to GAT and TC, HALO will be “uniquely positioned” in the aviation finance sector as a combination of the respective structuring and financing expertise and asset and technical capabilities of GAT and TC. “HALO will fill a need in an underserved marketplace that lacks a global, independent, and savvy asset-backed lender,” reads the press release announcing the launch.
HALO is launching its first fund HALO One, in partnership with InterVest Capital Partners (f/k/a Wafra Capital Partners). “GA Telesis has been our longstanding aviation investment partner for over ten years, and the HALO lending strategy is a natural and opportune evolution of our collective capabilities,” commented Michael Gontar, CEO of InterVest Capital Partners.
HALO One will benefit from an innovative revolving credit facility led by Citigroup as structuring agent and co-lead arranger and Fifth Third Bank, National Association, as co-lead arranger.
“There is a substantial opportunity to address the need for smarter asset-focused lending in the aviation industry,” said Abdol Moabery, CEO of GA Telesis. “HALO is unmatched as a lending platform given its extensive originations footprint, direct access to market values, and comprehensive in-house technical capabilities.”
HALO will be led by two co-heads, managing directors Marc Cho and Takamasa Marito.