A rare aircraft leasing securitization is making the rounds.
The $650.35 million AABS Limited Asset Backed Secured Term Loan is backed by lease payments and sale proceeds of a portfolio of 26 narrowbody commercial aircraft manufactured by Boeing and Airbus, according to ratings agency reports.
Goldman Sachs is the structuring agent and a joint lead arranger, along with Credit Agricole Corporate Investment Bank and BNP Paribas.
The deal consists of two tranches: a $557.01 million Series A tranche is rated A by Fitch Ratings and A+ by Standard & Poor's and a $93.34 million Series B tranche is rated BBB by both Fitch and S&P.
Overcollateralization is the primary form of credit enhancement, according to Fitch's presale report. The portfolio of aircraft is valued at $933.35 million, giving the Series A tranche a loan-to-value ratio (LTV) of 60% and the Series B tranche an LTV of 70%.
The portfolio was acquired by AABS from General Electric Capital Corp.; an affiliate, GE Capital Aviation Services, is the servicer, according to Fitch.