SKY Leasing has closed its $503 million aviation asset backed securities (ABS) deal SLAM 2025-1.
The offering consisted of one series A notes with an interest rate of 5.807%. The Series A notes have an initial loan-to-value of 73.0% and were rated A2 by Moody's and A by KBRA. The notes have an initial expected maturity of seven years and an initial expected weighted average life of 5.2 years based on the pricing case cash flow model. Affiliates of SKY acquired the E certificates of the transaction.
Proceeds will be used to acquire a portfolio of 19 Airbus and Boeing aircraft valued at approximately $689 million. The portfolio has an average age of 5.3 years and a weighted average lease term of 7.2 years. The portfolio comprises 88% narrowbody and 65% next generation technology.
"This transaction reflects SKY's continued leadership in structuring innovative, investor-aligned aviation finance solutions," said Matthew Crawford, co-chief investment officer at SKY. “The bespoke nature of this deal — combining a carefully curated portfolio with a robust capital structure — demonstrates our ability to deliver differentiated value. The strong investor response, with 3.6x final subscription levels, reinforces the market's confidence in our platform and our disciplined approach to asset selection and risk management.”
The company expects to refinance its existing warehouse debt financing facility with proceeds from the SLAM 2025-1 transaction.