HALO AirFinance Prices $390 Million Inaugural Aviation Loan ABS

HALO AirFinance has priced its first aviation loan asset-backed securitization, raising $390.2 million in a transaction that was more than four times oversubscribed.

HALO, a joint venture between GA Telesis and Tokyo Century, issued four classes of fixed-rate secured notes rated by KBRA. The offering includes $295.4 million of AA-rated Class A notes, $35.7 million of A-rated Class B notes, $28.6 million of BBB-rated Class C notes and $30.5 million of BB- rated Class D notes.

Proceeds will fund the acquisition of a portfolio of 33 loans with an aggregate remaining balance of approximately $427.2 million and a weighted average remaining term of 3.6 years.

The loans are secured by 14 narrowbody aircraft, two widebody aircraft, two freighters and 15 engines operated by 21 customers across 14 jurisdictions. Excluding engines, the underlying aircraft have a weighted average age of approximately 15.6 years.

HALO said the transaction was more than four times oversubscribed at pricing on August 6 and achieved the tightest spread for the AA-rated senior tranche of an inaugural aviation loan ABS issuer.

“This successful issuance establishes a scalable capital markets execution platform and strengthens our ability to serve airlines, lessors, and investors worldwide,” said Marc Cho, Co-Head and Managing Director of HALO.

Citi served as sole structuring agent and lead bookrunner, with Mizuho and Citizens as joint bookrunners.