NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of loans (the “Loans”) issued by Apollo Aviation Securitization Equity Trust 2016-2.
Proceeds from the sale of the Loans will be used to purchase a fleet of 35 aircraft that are initially leased to 22 airlines located in 20 countries with an initial total value of approximately $792.2 million.
This transaction represents the third securitization overall and second securitization in 2016 for Apollo Aviation Group (“Apollo” or the “Company”). Apollo was founded in 2002 with a focus on mid-life and end-of-life commercial aircraft and engines. As of September 30, 2016, Apollo had approximately $3.1 billion of assets under management, which includes a fleet of 125 narrow and widebody aircraft on lease to 52 carriers in 37 countries. Additionally, the Company has 24 jet engines leased to 11 counterparties in 10 countries.
The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Loans in the event of weak performance.
KBRA analyzed the transaction using the Aviation ABS Methodology published on May 15, 2015.
For complete details on the analysis, please see KBRA’s Presale Report, Apollo Aviation Securitization Equity Trust 2016-2, which was published today at www.kbra.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
| Class | Rating | Initial Loan Amount | ||||||
| Class A Loans | A(sf) | $515,000,000 | ||||||
| Class B Loans | BBB(sf) | $85,000,000 | ||||||
| Class C Loans | BB(sf) | $40,000,000 | ||||||
Related Publications: (available at www.kbra.com)
About Kroll Bond Rating Agency
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