#United States #Fort Lauderdale #GA Telesis #HALO AirFinance #Tokyo Century

HALO AirFinance Launches $390 Million Aviation Loan ABS

On August 12, 2026, HALO AirFinance made headlines by pricing a historic aviation loan asset-backed securitization (ABS) at a substantial $390.2 million. This funding marks the inaugural ABS issuance from the HALO platform, which serves to enhance the aviation finance landscape significantly.

Background of HALO AirFinance

HALO AirFinance is a joint venture between GA Telesis, LLC and Tokyo Century Corporation. The partnership aims to merge the extensive capabilities of both organizations to provide tailored lending solutions to airlines, lessors, and investors globally.

Key Highlights of the ABS Pricing

The recent transaction involved the issuance of four classes of fixed-rate secured notes, which received ratings from KBRA:

• - Class A Notes: $295.37 million rated 'AA'
• - Class B Notes: $35.67 million rated 'A'
• - Class C Notes: $28.62 million rated 'BBB'
• - Class D Notes: $30.54 million rated 'BB-'

The oversubscribed offering significantly exceeded expectations, with a demand level more than four times the initial amount. The HALOAN 2026-1 Notes not only demonstrated strong investor demand but also secured the tightest spread for an AA-rated senior tranche from a first-time aviation loan ABS issuer—a clear testament to the solid backing HALO enjoys in the capital markets.

Use of Proceeds

The proceeds from this ABS will be utilized to acquire a portfolio of 33 loans, which collectively hold an approximate balance of $427.2 million and an average remaining term of 3.6 years. Notably, the loans are secured by a diverse mix of assets, including 14 narrowbody aircraft, 2 widebody aircraft, 2 freighter aircraft, and 15 engines, utilized by 21 operators across 14 jurisdictions. The average age of these underlying assets is approximately 15.6 years, showcasing a mix between seasoned and newer equipment—an area where GA Telesis excels.

Statements from Leadership

Marc Cho, Co-Head and Managing Director of HALO, mentioned, "This milestone transaction not only signifies an important step in HALO's growth strategy but also reflects strong investor confidence in our platform." He further emphasized the significance of achieving major oversubscription amid volatile market conditions, which bodes well for HALO's future endeavors.

Takamasa Marito, also Co-Head of HALO and Managing Director of Tokyo Century, echoed similar sentiments. He noted that this transaction underlines the robust platform built through the partnership, and expressed eagerness for continued innovations in financing solutions to cater to their customers' evolving needs.

The Role of Partners

Citi acted as the sole structuring agent and lead bookrunner for the deal, with Mizuho and Citizens serving in joint bookrunner capacities. Legal representation was provided by Vedder Price as issuer counsel and Milbank as underwriter counsel. Financial services management will be handled by Phoenix American Financial Services, Inc., with UMB Bank, NA taking the role of Trustee.

About GA Telesis and Tokyo Century

GA Telesis is a significant player in the aerospace sector, providing integrated solutions across multiple global locations. Their vast network covers parts distribution, leasing, logistics, and engine maintenance. The firm is dedicated to sustainable practices, integrating advanced technologies and innovative materials in their operations.

Meanwhile, Tokyo Century is an industry leader in financial services, primarily focusing on leasing and specialized financing through its unique business model that intertwines finance with practical services. With a presence in over 30 countries, this company is not only a major stakeholder in GA Telesis but also drives transformation through its commitment to resolving social and environmental challenges.

The launch of HALO AirFinance's inaugural aviation loan ABS may very well be a defining moment in the pursuit of advanced yet approachable financing solutions in the aviation sector. As these two companies continue to innovate and expand their reach, their journey promises to inspire others in the finance and aviation industries alike.