A new aviation asset-backed securitisation (ABS) loan transaction has been launched. SALT 2021-1 is being issued by servicer Bellinger Loan Management, and in respect of a limited number of loan facilities, SP Novo Holdings I LP, which is a limited partnership that forms part of the Stonepeak aviation platform. This is their inaugural aviation ABS loan transaction, where the notes will be secured by interests in 26 loan facilities comprised of 116 loans to 15 obligors. In addition, 25 of the loan facilities are secured by 156 aircraft on lease to 45 lessees located in 29 jurisdictions, with one more unsecured loan facility. This Portfolio consists of 32 widebody aircraft (53.3% of the appraised aircraft value allocable to the Issuer), 112 narrowbody aircraft (40.4% by value), and 12 regional jets (6.7% by value).
Bellinger and Stonepeak jointly acquired the $1.1bn aircraft loan portfolio from National Australia Bank in May 2021, which comprised 27 loan facilities secured by 159 aircraft. Stonepeak will retain the equity throughout the term of the transaction.
The $893.5 million loan ABS deal is structured with five tranches of notes that all mature in February 2033: $364.188 million AA class notes, which have an initial loan-to-value ratio of 37.5% based on the loan balance (26.3% based on the aircraft balance), and were rated AA by KBRA; $339.909 million A notes, rated A by KBRA, with an LTV of 72.5% (50.9%); $111.685 million B notes, rated BBB, with an LTV of 84.0% (58.9%); $53.415 million C notes, rated BB, with an LTV of 89.5% (62.8%); and $24.28 million D notes, rated B, with an LTV of 92.0% (64.5%).
Goldman Sachs and Deutsche Bank are the co-lead structuring agents and lead left bookrunners on the deal. Natixis is providing the liquidity facility, with Phoenix American as the managing agent. UMB is the trustee.