Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (the “Notes”) issued by AASET 2018-1 Trust.
Proceeds from the sale of the Notes will be used to acquire 24 aircraft that are initially leased to 16 lessees located in 14 countries with an initial total value of approximately $532.9 million.
This transaction represents the fifth 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 December 31, 2017, Apollo had approximately $5.0 billion of assets under management, which includes a fleet of 180 narrowbody and widebody aircraft on lease to 81 lessees in 49 countries. Additionally, the Company has over 20 engines leased to eight counterparties in seven 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 Global Aviation ABS Methodology published on November 28, 2017.
For complete details on the analysis, please see KBRA’s pre-sale report, AASET 2018-1 Trust (Apollo Aviation) Pre-Sale Report, 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.
Notes Preliminary Rating Initial Note Amount
Class A Notes A (sf) $351,689,000
Class B Notes BBB (sf) $58,615,000
Class C Notes BB (sf) $31,972,000
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available AASET 2018-1 Trust Representations and Warranties Disclosure.