Carlyle pools eighth lease securitization of aged aircraft

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Carlyle Aviation Management is issuing its eighth securitization of aircraft leases since 2014, pooled with the mid- to end-of-life aircraft that that source its typically well-aged ABS collateral.

The $540.36 million AASET 2019-2 is a bond offering of three classed and notes secured by lease payments and disposition needs on a pool of 29 mid- to end-of-life aircraft leased to 17 global airlines.

The aircraft are aged an average of 11.9 years, which Fitch Ratings noted “is at the older end of the range for recent peer transactions” in aircraft lease securitizations. But the deal is actually younger than recent AASET transactions, including a weighted average of 15.8 years in AASET 2019-1 that priced in June, Fitch noted.

Fitch and Kroll Bond Rating Agency assigned a provisional A rating to the Class A senior notes in the class totaling $430.34 million.

The aircraft are owned and serviced by Carlyle Aviation Management, which was formerly Apollo Aviation Group before being acquired by The Carlyle Group in 2018.

The largest concentration of planes are leased to airlines based in Brazil, making up 20.4% of the portfolio’s $647.13 million appraised asset value. The average aircraft value is $22.3 million.

The aircraft in the pool include previous-generation models such as the Airbus A320 and the Boeing B737-800. Carlyle is also including four widebody aircraft: two A330-200s and two B777-200ERs.

Goldman Sachs is the sole structuring agent and lead bookrunner.

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