A new secured deal from Airborne Capital has closed, earning the moniker of being only the third aviation asset-backed securitisation transaction to successfully close in 2022.
The $303.7 million Marathon Asset Management asset-backed securitisation transaction (MAST 2022-1) is formed of single A tranche of senior notes secured by a portfolio of 15 narrowbody aircraft, including two Boeing 737 MAX 8s, two Airbus A320neos, six Airbus A320-200s and five Boeing 737-800NG aircraft. The portfolio has a weighted average age of 6.0 years and an average remaining lease term of approximately 6.4 years.
The notes are A-rated, with an initial loan-to-value (LTV) ratio of 61.1%. The notes are listed but the equity slice was taken by one firm, PIMCO, which framed the deal almost as a quasi-private placement. The A notes priced just below 7%, which is a good result in a market that has been effectively closed down for most of the year.
Marathon is the sponsor of the ABS while Airborne Capital is the servicer. Mizuho Securities was the structuring and placement agent while Clifford Chance and Vedder Price were the legal advisors
Commenting on the transaction, Joe Thorstenson, Managing Director and Head of Marathon's Aviation Strategy, said: "As a long-term investor in the aviation space we are delighted to raise ABS finance on attractive terms for this high-quality portfolio of in-demand aircraft."
Ramki Sundaram, CEO of Airborne Capital, added: "Airborne Capital continues to solidify its strong track record with our second successful ABS issuance. We are delighted with our partnership with Marathon on this transaction and it represents another strong validation of our origination and asset management credentials, coupled with the delivery of an attractive liability solution."