SKY Leasing Completes $503 Million Secured Notes Offering for Aircraft Portfolio
On May 29, 2025, SKY Leasing, a prominent name in aviation investment management, announced a significant achievement with the closing of a $503 million issuance of secured notes, referred to as the "Notes", by SLAM 2025-1 Limited and SLAM 2025-1 LLC. This offering is set against the backdrop of SKY’s strategic intent to bolster its portfolio of aviation assets, specifically targeting 19 Airbus and Boeing aircraft, valued collectively at approximately $689 million. The aircraft in question are notable for their average age of 5.3 years, alongside a weighted average lease term of 7.2 years, with a keen focus on narrowbody and next-generation aircraft, making up 88% and 65% of the portfolio, respectively.
The secured notes issuance consists of a $503 million Series A Notes, boasting an interest rate of 5.807%. These notes come with an initial loan-to-value (LTV) ratio of 73.0% and received favorable ratings of A2 (sf) from Moody’s Investors Service and A (sf) from Kroll Bond Rating Agency (KBRA). The expected maturity for these notes stands at 7 years, with a projected average lifespan of 5.2 years, based on cash flow models used for pricing. This strategic move further demonstrates SKY’s role as a servicer for SLAM’s aircraft portfolio, reinforcing its presence in the sector.
Matthew Crawford, Co-Chief Investment Officer at SKY, remarked on the transaction's implications by stating, "This transaction reflects SKY's continued leadership in structuring innovative, investor-aligned aviation finance solutions." He underscored the unique composition of the investment deal and highlighted the well-structured capital arrangement that continues to spur confidence among investors. The offering witnessed a significant enthusiasm, illustrated by subscription levels reaching up to 3.6 times what was anticipated. This reflects the market's growing confidence in SKY’s operations and its meticulous approach to asset selection and risk management.
SKY Leasing's intent is also to refinance its existing warehouse debt financing facilities using the proceeds from the SLAM 2025-1 transaction. This move highlights a proactive effort to maintain financial fluidity and enhance their operational efficiency in managing significant aviation assets.
On the operational front, financial heavyweights such as MUFG, Citi, and BNP Paribas took on key roles as joint lead structuring agents and bookrunners, while other notable names including BofA Securities and Deutsche Bank Securities also contributed significantly to the transaction.
It is crucial to denote that these notes were not registered under the U.S. Securities Act of 1933 and were, therefore, offered exclusively to qualified institutional buyers under Rule 144A of the Act. As such, they are not available for trade within the United States unless specific conditions — like proper registration — are met. This finer detail ensures that SKY remains compliant with all regulatory expectations while pursuing innovative funding avenues.
SKY Leasing is strategically positioned with a global presence spread across multiple key financial hubs including San Francisco, Dublin, New York, Miami, and Singapore. Leveraging three decades of relationships within the aviation sector, coupled with an established framework for disciplined investment practices, SKY continuously seeks out unique investments prioritizing downside protection and consistent cash flow.
Since its foundation in 2019, with a minority investment injected by MG Investments, SKY has emerged powerfully in the market, currently managing in excess of $5 billion worth of aviation assets as of March 2025. This track record establishes the firm as a formidable player not only within the aviation investment arena but also within broader financial markets.
For more information regarding this latest offering, potential investors or interested parties can explore further details directly on the official SKY Leasing website. This issuance marks yet another step towards expansion and adaptability in an ever-evolving aviation landscape.
The secured notes issuance consists of a $503 million Series A Notes, boasting an interest rate of 5.807%. These notes come with an initial loan-to-value (LTV) ratio of 73.0% and received favorable ratings of A2 (sf) from Moody’s Investors Service and A (sf) from Kroll Bond Rating Agency (KBRA). The expected maturity for these notes stands at 7 years, with a projected average lifespan of 5.2 years, based on cash flow models used for pricing. This strategic move further demonstrates SKY’s role as a servicer for SLAM’s aircraft portfolio, reinforcing its presence in the sector.
Matthew Crawford, Co-Chief Investment Officer at SKY, remarked on the transaction's implications by stating, "This transaction reflects SKY's continued leadership in structuring innovative, investor-aligned aviation finance solutions." He underscored the unique composition of the investment deal and highlighted the well-structured capital arrangement that continues to spur confidence among investors. The offering witnessed a significant enthusiasm, illustrated by subscription levels reaching up to 3.6 times what was anticipated. This reflects the market's growing confidence in SKY’s operations and its meticulous approach to asset selection and risk management.
SKY Leasing's intent is also to refinance its existing warehouse debt financing facilities using the proceeds from the SLAM 2025-1 transaction. This move highlights a proactive effort to maintain financial fluidity and enhance their operational efficiency in managing significant aviation assets.
On the operational front, financial heavyweights such as MUFG, Citi, and BNP Paribas took on key roles as joint lead structuring agents and bookrunners, while other notable names including BofA Securities and Deutsche Bank Securities also contributed significantly to the transaction.
It is crucial to denote that these notes were not registered under the U.S. Securities Act of 1933 and were, therefore, offered exclusively to qualified institutional buyers under Rule 144A of the Act. As such, they are not available for trade within the United States unless specific conditions — like proper registration — are met. This finer detail ensures that SKY remains compliant with all regulatory expectations while pursuing innovative funding avenues.
SKY Leasing is strategically positioned with a global presence spread across multiple key financial hubs including San Francisco, Dublin, New York, Miami, and Singapore. Leveraging three decades of relationships within the aviation sector, coupled with an established framework for disciplined investment practices, SKY continuously seeks out unique investments prioritizing downside protection and consistent cash flow.
Since its foundation in 2019, with a minority investment injected by MG Investments, SKY has emerged powerfully in the market, currently managing in excess of $5 billion worth of aviation assets as of March 2025. This track record establishes the firm as a formidable player not only within the aviation investment arena but also within broader financial markets.
For more information regarding this latest offering, potential investors or interested parties can explore further details directly on the official SKY Leasing website. This issuance marks yet another step towards expansion and adaptability in an ever-evolving aviation landscape.
Topics Financial Services & Investing）
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