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 issuance is notable as it represents the first AAA-rated aviation ABS public issuance in over 20 years, attributed to the quality of the asset portfolio and the management team's capabilities [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 aims to diversify its financing sources and enhance its ability to provide competitive financing to airline and lessor clients through this transaction [2] Transaction Details - The issuance was oversubscribed and included participation from various capital market participants, including third-party insurers [2] - The Notes are secured by a portfolio of 122 senior-secured aviation loans, covering 70 narrowbody aircraft, 6 widebody aircraft, 30 freighter aircraft, 7 engines, and 9 regional jet aircraft across 52 unique obligors [2] Management Commentary - The CEO of PK AirFinance expressed excitement about the transaction, highlighting its strategic significance and the strength of the collateral pool [2] - The transaction is seen as a testament to PK's track record in aviation finance and its comprehensive servicing capabilities [2]