en.Wedoany.com Reported - AIP Capital and Monroe Capital recently announced the completion of the first aircraft asset-backed securitization (ABS) financing transaction for their aircraft leasing joint venture, named MC Aviation 2026-1 (MCAV 2026-1). The transaction secured a total of $643 million in asset-backed debt, with proceeds used to finance a diversified portfolio of 18 commercial passenger aircraft, which are leased under operating leases to 12 lessees across 10 different jurisdictions.

The aircraft portfolio involved in the transaction has a weighted average age of 5.6 years and a remaining lease term of approximately 6.9 years. 71% of the portfolio consists of next-generation aircraft, 81% are narrow-body aircraft, with only one wide-body aircraft, which is less than one year old. AIP Managing Partner Jared Ailstock stated that the transaction reflects market confidence in AIP's expertise in the aircraft leasing sector and its strategic partnership with Monroe Capital, serving as the foundation for their joint investment plan. Aaron Peck, Managing Director and Co-Head of Monroe Alternative Credit Solutions, noted that the successful completion of MCAV 2026-1 is significant for their platform, reflecting the strength of asset-based financial capabilities. He thanked investors and financing partners for their support and looks forward to building on the foundation established by this transaction. Aaron Levy, Managing Director of Monroe Alternative Credit Solutions, said the deal reflects the quality of the portfolio formed through collaboration with AIP and its rigorous approach to aviation investment; he believes that commercial aviation continues to offer attractive investment opportunities, supported by strong asset fundamentals, favorable supply-demand dynamics, and sustained growth in global air travel. The successful execution of the first securitization highlights the platform's strength.

MCAV 2026-1 consists of three tranches of notes: $547 million in Class A notes with a fixed coupon of 5.82% and a yield of 5.896%; $66.5 million in Class B notes with a fixed coupon of 6.60% and a yield of 6.696%; and $29.6 million in Class C notes retained by the issuer. The initial loan-to-maintenance-adjusted base value ratio (LTV) is 74% for Class A notes, 83% for Class B notes, and 87% for Class C notes. Class A notes are rated A by DBRS Morningstar and Kroll Bond Rating Agency, Class B notes are rated BBB, and Class C notes are rated BB. Additionally, Moody's Investors Service rated the Class A notes as A2.

In this transaction, AIP Capital will act as the servicer. Deutsche Bank Securities, BNP Paribas, and Fifth Third Securities served as joint structuring agents and joint lead bookrunners, Citigroup served as joint lead bookrunner, Natixis and BMO Capital Markets served as bookrunners, and KeyBanc Capital Markets served as co-manager. Natixis acted as liquidity facility provider, and UMB Bank, N.A. served as trustee, securities trustee, and operating bank. Pivotal Corporate AMS Limited acted as management agent. Milbank LLP, Walkers (Cayman) LLP, and Walkers (Ireland) LLP provided legal counsel to MC Aviation, while Gibson Dunn served as legal counsel to the bookrunners.

AIP Capital (AIP) is a global alternative investment management firm focused on asset-based finance, including aviation and equipment finance. AIP and its affiliates manage approximately $7.1 billion in assets, with a team of over 70 professionals based in offices in Stamford, New York City, Dublin, and Singapore.

Monroe Capital LLC is a premier asset management firm specializing in private credit markets, including direct lending, technology finance, venture debt, alternative credit solutions, structured credit, real estate, and equity. Since 2004, the firm has provided capital solutions to clients in the United States and Canada. Headquartered in Chicago, Monroe has 13 office locations across the United States, Asia, Australia, Europe, and the Middle East. Monroe has received several industry recognitions, including GrowthCap Advisory's 2025 Top Private Credit Firms list and Private Debt Investor's 2025 Americas CLO Manager of the Year.