#United States #New York #Securitization #Ashland Place #Aviation Loan

Ashland Place's Second Aviation Loan Asset-Backed Securitization

In a significant development for the commercial aviation financing industry, Ashland Place Finance LLC has successfully priced its second aviation loan asset-backed securitization (ABS), dubbed APL Finance 2025-1. This noteworthy transaction comes just under two years after the firm’s inaugural securitization, clearly showcasing its growth and expertise in the aviation lending sector.

Record-Breaking Pricing

The APL Finance 2025-1 will issue a total of $414.4 million in notes, capturing strong investor interest and resulting in oversubscription. This is particularly impressive in a market characterized by fluctuating demands and varying investor sentiments. What's more, the pricing has been set at +125 basis points — a historic low for the aviation loan ABS market. This development not only highlights Ashland Place's strong market position but also sets a benchmark for future transactions in this sector.

Unique Collateral Pool

This securitization transaction is backed by a carefully curated pool of loan facilities, involving 13 narrowbody aircraft, eight freighter aircraft, two widebody aircraft, and three narrowbody host engines on lease to 15 lessees across 13 jurisdictions. What sets APL Finance 2025-1 apart is its unique collateral pool, where all loan facilities are noted to be 100% primary origination, 100% sole lender, and 100% secured. Such quality guarantees significantly lower risks, making it an attractive option for investors.

The proceeds from this issuance will be utilized to acquire a portfolio consisting of 11 loan facilities made up of 26 loans, further solidifying Ashland Place’s role as a key player in the aviation market.

Proven Experience and Future Outlook

Jennifer Villa, Executive Director and Group Head at Ashland Place, expressed pride in what has been achieved with APL Finance 2025-1. She stated, “We are incredibly proud to be issuing our second – and largest – aviation loan ABS in just under two years since our first ABS transaction. This transaction underscores our deep experience in aviation lending.” Notably, the transaction includes four tranches of notes, with the A-tranche through C-tranche receiving investment-grade ratings from KBRA, reassuring investors of its soundness.

As companies worldwide continue to seek innovative financing solutions, Ashland Place stands poised to leverage its experience and actively participate in the aviation ABS market. Villa also added that the robust demand for this second securitization signals a promising future.

Expert Involvement and Legal Guidance

Citi was appointed as the sole structuring agent for this transaction, underlining its expertise in managing complex capital raise initiatives. Alongside Citi, ATLAS SP Partners served as joint lead bookrunners, with Morgan Stanley having a role as a joint bookrunner as well.

Legal aspects were diligently managed by Vinson Elkins, who represented Ashland Place, while Milbank LLP provided legal counsel for Citi, ATLAS SP Partners, and Morgan Stanley. To top off the multi-party involvement, Pivotal Corporate AMS Limited will act as Managing Agent for this securitization, showcasing the collaborative spirit of the entire endeavor.

About Ashland Place Finance LLC

Ashland Place Finance LLC is an institutional financing platform delivering innovative capital solutions to the global commercial aerospace industry. As a wholly-owned subsidiary of Davidson Kempner Capital Management LP, the firm is dedicated to facilitating diverse financing avenues to an industry that calls for adaptability and expertise. More details can be found at www.ashlandplace.com.