CIT Aviation Finance is coming out with a $640-million, single-tranche deal backed by aircraft operating leases, according to a presale report by Fitch Ratings.
The agency expects to assign a Asf’ rating to the deal, which has a legal final maturity of 25 years.
Goldman Sachs & Co is the structuring agent. The servicer is CIT Aerospace International.
The portfolio behind the transaction consists of 21 narrowbody, four widebody and three regional commercial aircraft. CIT Aerospace International (CITAI) will be servicer of the assets. Fitch considers the pool “high quality” as bulk are “young tier 1” planes, which means their remaining life should be quite long.
On the other hand, there are risks associated with technological improvement in newer models, significant lessee concentration, and the cyclical nature of the aviation industry.