PK AirFinance Issues $633 Million Aviation Loan ABS

Transaction Overview - PK AirFinance closed its second aircraft loan asset-backed securitization (ABS) in 2024, named PK ALIFT LOAN FUNDING 4 Series 2024-2 (PKAIR 2024-2), issuing over $633 million of debt [1] - The issuance was oversubscribed and included AAA-rated tranches rated by KBRA and DBRS [1][2] - The debt will be used to acquire a 100% series limited partnership interest in a PK-managed origination vehicle, securing the rights to the economics of a portfolio of aviation loans [1] Portfolio Details - The notes are secured by a portfolio of 129 senior-secured aviation loans, covering 73 narrowbody aircraft, 8 widebody aircraft, 32 freighter aircraft, 6 engines, and 10 regional jet aircraft [2] - The portfolio spans 53 unique obligors [2] Market Participation - The issuance saw broad participation from capital markets participants, including third-party insurers [2] - Redding Ridge Asset Management and Mizuho Americas acted as co-structuring agents, while Mizuho Americas, BNP Paribas, RBC, and Apollo Global Solutions served as Joint Lead Bookrunners [2] - Blackstone Securities Partners L P acted as Co-Manager [2] Company Statement - PK AirFinance CEO Gary Rothschild emphasized the company's commitment to diversifying funding sources through capital markets and its intention to be a repeat issuer [2] - The company aims to grow the PKAIR ABS shelf to provide flexible and competitive financing solutions to airline and lessor clients [2] Legal and Advisory Roles - Milbank LLP served as issuer counsel, and Vedder Price acted as lender counsel [3] Company Background - PK AirFinance is a specialized aircraft and aircraft engine lending business with deep expertise in aviation finance [3] - The company has comprehensive origination, underwriting, structuring, and syndication capabilities delivered by a team of experienced professionals [4]