Carlyle Aviation Partners has marketed its aviation asset-backed securities (ABS) AASET 2025-3 under its master trust transaction AASET MT-1.
The $602.4 million deal marks Carlyle's 19th serviced aviation ABS transaction.
The first issuance under its master trust structure closed in February 2025 and the second closed in June. A Carlyle-managed company will retain the equity of the master trust structure at closing.
This third issuance consists of A and B tranches. The A notes total $526.2 million, while the B notes total $76.3 million. Both have an anticipated repayment date of November 2032 and a legal maturity date of February 2050.
The A notes have an initial loan to value (LTV) of 69%, and are expected to be rated A by both KBRA and Fitch Ratings.
The B notes have an initial loan to value of 79%, and are expected to be rated A- by Fitch. KBRA does not expect to rate the subordinate tranche.
Proceeds from the notes will be used to acquire 23 additional commercial aircraft operated by lessees. The additional aircraft added to the master trust collateral will bring the total portfolio to 69 commercial jets — 66 narrowbodies and three widebodies.
As of the end of October 2025, the weighted average age of the portfolio is around 8.1 years, and the weighted average remaining term of the initial lease contracts is around 5.8 years.
The 23 additional aircraft are all narrowbodies. The 12 lessees operating the aircraft are based across 11 different jurisdictions. The aircraft are 65.8% new-technology aircraft and 34.2% current generation.
The master trust structure allows Carlyle to issue additional sub-series of A and B notes.
The aircraft added to the master trust portfolio can be selected from a pre-identified pool of aircraft. There are eight aircraft remaining in this pool.
“For subsequent series issuances, at least 12 eligible aircraft must be added under the purchase agreement," Fitch said in its report. "As of the offering memorandum date, fewer than 12 eligible aircraft remain, so any future issuance would require amending or waiving this minimum.”
Goldman Sachs is the sole lead structuring agent, global coordinator and left lead bookrunner on this issuance.
Societe Generale is providing the liquidity facility for this third issuance, as well as for the second series.
The liquidity facility provider for the initial series was Natixis.
The three liquidity facilities are each sized to nine months of interest due on the respective issuances.