PK AirFinance Issues Inaugural $622 Million Aviation Loan ABS

Core Insights - PK AirFinance has successfully closed its inaugural aircraft loan asset-backed securitization, PK ALIFT LOAN FUNDING 3 Series 2024-1, issuing over $622 million in notes [1][2] - This marks the first commercial aircraft loan ABS issuance in 2024 and the first AAA-rated aviation ABS public issuance in over 20 years, attributed to the quality of the asset portfolio and management team [1][2] Company Overview - PK AirFinance is a specialized aircraft and aircraft engine lending business with extensive expertise in aviation finance, offering comprehensive origination, underwriting, structuring, and syndication capabilities [3] - The company is an affiliate of Apollo and aims to diversify its financing sources while supporting its integrated aviation platform's demand for directly originated aviation assets [2] Transaction Details - The issuance was oversubscribed and included broad participation from capital markets participants, including third-party insurers [2] - The notes are secured by a portfolio of 122 senior-secured aviation loans across various aircraft types, including 70 narrowbody, 6 widebody, 30 freighter, 7 engines, and 9 regional jet aircraft, involving 52 unique obligors [2] - Apollo Global Solutions served as the sole lead arranger, with multiple financial institutions acting as joint lead bookrunners [2]