PK AirFinance Issues $633 Million Aviation Loan ABS
Summary
PKAIR 2024-2 issued over $633 million of debt that will be used to acquire the rights to the economics of a portfolio of aviation loans via the acquisition of a 100% series limited partnership interest in a PK-managed origination vehicle.PK ALIFT 2024-2 marks the second commercial aircraft loan ABS issuance in 2024, both of which have included AAA-rated tranches rated by both KBRA and DBRS.The oversubscribed issuance saw broad participation from capital markets participants, including third-party insurers. "We are excited to grow the PKAIR ABS shelf, which is instrumental in our ultimate goal of providing flexible and competitive financing solutions to our airline and lessor clients. "Redding Ridge Asset Management and Mizuho Americas acted as co-structuring agents on the transaction. Mizuho Americas, BNP Paribas, RBC, Apollo Global Solutions served as Joint Lead Bookrunners, with Blackstone Securities Partners L.P. acting as Co-Manager.Milbank LLP served as issuer counsel and Vedder Price acted as lender counsel.PK Airfinance is a premier specialized aircraft and aircraft engine lending business with deep expertise in the aviation finance sector. Its comprehensive origination, underwriting, structuring and syndication capabilities are delivered by a team of experienced professionals, whose extensive experience in varied products and geographies was built over several decades and industry cycles.