volofin Completes $446 Million Aviation Loan ABS

volofin Capital Management has completed a $446 million aviation loan asset-backed securitization, marking the alternative aviation lender’s second aircraft loan ABS transaction.

The VFIN 2026-1 transaction issued approximately $446 million of notes, including about $25 million of residual interest notes retained by volofin. Proceeds were used to acquire lender interests in a portfolio of 23 aviation loan facilities originated by the company.

Morningstar DBRS and KBRA both assigned AAA ratings to the Class A notes and AA ratings to the Class B notes. Morningstar DBRS also rated the Class C, D and E notes A, BBB (low) and BB (low), respectively.

The offering was oversubscribed and attracted participation from a broad group of institutional investors. The notes are secured by a portfolio of 66 senior-secured aviation loans backed by 174 assets across 43 credit counterparties and 23 jurisdictions.

The collateral comprises approximately 60% narrowbody aircraft, 17% widebodies, 14% turboprops, 3% regional jets and 6% aircraft engines and auxiliary power units. The assets were initially valued at approximately $570 million based on average half-life base values from BK Associates, IBA and mba Aviation.

volofin said it is one of only three commercial aviation alternative lending platforms to have received a AAA rating for the senior tranche of an aviation loan ABS. The company attributed the ratings to the quality and diversification of the loan portfolio, underlying counterparties and collateral, as well as its management team’s industry experience.

volofin will serve as transaction servicer. BNP Paribas acted as sole lead bookrunner and, alongside volofin, as co-structuring agent, while Guggenheim Securities served as co-manager.