World Star Aviation has marketed its third aviation asset-backed securitisation (ABS) deal, Sprite 2026-1.
The $495 million deal has three tranches, including two subordinate notes. The repayment date is expected to be March 2033 and the legal final maturity date is March 2041.
The A notes total $375 million and have a metal initial loan to value (LTV) of 78.2% and maintenance-adjusted base value LTV of 71.3%.
The $55 million B notes have a metal LTV of 89.9% and maintenance-adjusted base value LTV of 81.9%.
The C notes total $70 million, and have a metal LTV of 104.7% and a maintenance-adjusted base value LTV of 95.4%.
KBRA and Fitch expect to rate the A tranche with an A rating. Both agencies have given a BBB preliminary rating to the B tranche. KBRA has not rated the C tranche, while Fitch expects to rate it BB-.
Proceeds will be used to acquire a portfolio of 30 assets, including 28 converted freighter aircraft and two narrowbodies on lease to 17 lessees in 16 jurisdictions. One of the 28 converted freighters includes one narrowbody that has been contracted for conversion to freighter.
The weighted average age of the portfolio is around 22.3 years, and 3.5 years for freighter aircraft post-conversion. The weighted average remaining term of the initial lease contracts is around 5.4 years.
The aircraft are all 737-8s and 737-800s variants.
Mizuho Securities acted as sole structuring agent and left lead bookrunner. MUFG acted as liquidity facility provider and UMB Bank is the security trustee.