Apollo prepares fourth ABS issuance – AASET 2017-1

Eleanor Steed
By Eleanor Steed May 24, 2017 12:28

Apollo prepares fourth ABS issuance – AASET 2017-1

Apollo Aviation is preparing to issue its fourth asset backed securitisation issuance. Apollo Aviation Securitization Equity Trust 2017-1 (AASET 2017-2), which was structured by Goldman Sachs, acting as the global structuring agent, global coordinator and the lead left bookrunner, follows the same single waterfall structure as AASET 2016-2 but this deal has been issued in bond format.

The $612.2million three-tranched deal comprises: $479.456 million of A notes, rated A by Kroll Bond Rating Agency, with an initial loan-to-value ratio of 65%; $88.515 million of BBB-rated B notes, with an LTV of 77%; and $44.257 million of BB-rated C notes.

The notes are secured on a portfolio of 32 aircraft that are initially leased to 23 airlines located in 20 countries with an initial total value of approximately $737.6 million. The top three lessees in the portfolio are Air Europa, AirAsia X and Jet Airways. The portfolio has an initial weighted average age of approximately 12.2 years, with the distribution in assets that are of the mid-life age, typically defined as six to 18 years in age. The portfolio comprises: 14 737-800s, nine A319-100s, four A330-200, three A320-200s, one A330-300 and one 737-700. The portfolio represents approximately 22.2% (by number of aircraft) of Apollo’s managed leased fleet (includes aircraft committed to be purchased).

Apollo Aviation Management will act as servicer for the transaction. DVB is providing the liquidity facility, with Wells Fargo as the trustee and Phoenix American Financial Services as the managing agent.

Eleanor Steed
By Eleanor Steed May 24, 2017 12:28