Proceeds from the sale of the Notes will be used to purchase 32 aircraft that are initially leased to 23 airlines located in 20 countries with an initial total value of approximately $737.6 million.
This transaction represents the fourth securitization 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 March 31, 2017, Apollo had approximately $3.7 billion of assets under management, which includes a fleet of over 140 narrowbody and widebody aircraft on lease to 63 lessees in 41 countries. Additionally, the Company has over 30 engines leased to 10 counterparties in nine countries.
The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Notes in the event of weak performance.
KBRA analyzed the transaction using the Aviation ABS Methodology published on October 26, 2016.
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 Note Amount|
|Class A Notes||A (sf)||$479,456,000|
|Class B Notes||BBB (sf)||$88,515,000|
|Class C Notes||BB (sf)||$44,257,000|
Related Publications: (available at www.kbra.com)
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).