Apollo Aviation Group has priced its second aircraft securitization: Apollo Aviation Securitization Equity Trust 2016-1 (AASET 2016-1), the company said.
AASET 2016-1 will issue USD510 million of asset backed notes that will be used to acquire a fleet of 32 aircraft.
AASET 2016-1 will issue three tranches of ABS Notes with the following principal amounts and coupons: USD395 million Class A Fixed Rate Notes Series 2016-1 at 4.875 percent, USD80 million Class B Fixed Rate Notes Series 2016-1 at 6.500 percent, and USD35 million Class C Fixed Rate Notes Series 2016-1 at 9.197 percent.
Apollo Aviation Management Limited, an affiliate of Apollo Aviation, will act as servicer for the transaction.
The Class A Fixed Rate Notes Series 2016-1 will be sold at a price equal to 98.57448 percent of their face value, with an effective yield of 5.375 percent. The Class B Fixed Rate Notes Series 2016-1 will be sold at a price equal to 97.96571 percent of their face value, with an effective yield of 7.250 percent. The Class C Fixed Rate Notes Series 2016-1 will be sold at a price equal to 99.99891 percent of their face value, with an effective yield of 9.375 percent.
Apollo Aviation Group is a multi-strategy aviation investment manager that seeks to capitalize on its extensive technical knowledge, in-depth industry expertise and long-standing presence in the mid-life commercial aviation sector. Founded in 2002, Apollo has grown to USD2.5 billion[1] of aviation assets under management representing over 90 aircraft and 55 aircraft engines. It has offices in the US, Ireland and Singapore.
