Perseus Asset Management, in its inaugural serviced aviation securitization, is preparing to sell $680.1 million in asset-backed securities (ABS) to investors, collateralized by lease revenue on a portfolio of 27 aircraft assets.
Narrowbody aircraft account for 25, or 85%, of the related assets in the deal, MAPS 2026-1. There are 17 underlying lessees located in 16 jurisdictions including North America, Europe, Africa & Middle East, according to Kroll Bond Rating Agency.
Deutsche Bank Securities is the sole structuring agent and lead bookrunner on the deal, which will issue notes through two tranches of class A and B notes, KBRA said. All the notes have a January 2033 anticipated date of repayment, and a January 2051 legal final maturity date, KBRA said.
The class A notes contain the bulk of the outstanding notes, with $571.5 million, KBRA said.
Asset Securitization Report's deal database notes that the deal is slated to close on February 27.
Fitch Ratings analysts also assessed the notes, saying leverage levels were acceptable at 71.0% and 84.5% for the class A and B notes, respectively. Notes will amortize on what Fitch calls a straight line, accounting for the aircraft manufacturers' varying serial numbers.
By aircraft value, Fitch says 6% are leased to credits considered investment grade, while the weighted average rating by Fitch Value ranges between 'B' and 'B-', the rating agency said.
Also, the deal will repay sequentially, with principal and interest on the class A notes senior to principal and interest on the class B notes.
The deal structure includes a minimum number assets test, KBRA said. In it, issuers must own at least six assets after the delivery period under the purchase agreement, or MAPS 2026-1 will begin to use any excess cash to fully pay down the notes, the rating agency said. Fitch notes that this feature mitigates concentration risk.
Taking a deeper look at the aircraft and servicing, Fitch says Perseus Asset Management is an effective asset management with a proven history in remarketing, underwriting and procuring aircraft, as well as maintaining them, among its other functions.
KBRA assigns A to the class A notes, while Fitch assigns A and BBB+ to classes A and B, respectively.
