First all-cargo aircraft ABS launched

Vx Capital Partners launched the first all-cargo aircraft asset backed securitisation (ABS) last week. Offering $189 million of loans in three tranches: $138.5 million of class A loans, with a 55.4% loan-to-value ratio, which are rated A by Kroll; $35.5 million class B loans, rated BBB, with a 69.6% LTV; and $15 million BB-rated C class loans, with a 75.6% LTV. All three classes have a maturity of 15 years. The A and B loans amortise on a nine-year straight-line schedule, while the class C loans amortise on a five-year straight-line schedule. The loans are secured on a portfolio of