The Conversation (0)
PK AirFinance ("PK" or the "Company"), a leading aviation lending platform and affiliate of Apollo (NYSE: APO), has closed its second aircraft loan asset-backed securitization of 2025: PK ALIFT LOAN FUNDING 7 Series 2025-2 ("PKAIR 2025-2"). PKAIR 2025-2 represents PK's largest ABS transaction to date, issuing approximately $827 million of debt that will be used to acquire the rights to the economics of a portfolio of aviation loans.
PKAIR 2025-2 marks PK's fourth commercial aircraft loan ABS issuance since July 2024, with the Company having issued approximately $2.8 billion of cumulative ABS transactions over the past fifteen months. The transaction is also the first commercial aircraft loan ABS issuance to feature a ‘Big Three' AAA rating in more than 20 years, with Fitch ascribing ‘AAA' and ‘AA' ratings to PKAIR 2025-2' A and B tranches, respectively.
The oversubscribed issuance saw broad participation from capital markets participants, including a wide range of institutional investors. Notes are secured by the proceeds of a portfolio of 107 senior-secured aviation loans spanning 42 unique obligors, with first priority liens on approximately $1.4 billion in underlying metal value.
"PK is thrilled to close on 25-2, our second issuance of 2025 and largest loan ABS transaction to date," said Gary Rothschild, CEO of PK AirFinance. "This transaction – supported by the first-ever Fitch AAA rating in Aviation – represents another key milestone for the PKAIR program and is a testament to PK's demonstrated track record within aviation finance. We believe this further enhances our ability to provide flexible, competitive financings to our airline and lessor clients over the long term."
PKALIFT 2025-2 featured ratings from three rating agencies – Fitch, KBRA and DBRS. Redding Ridge Asset Management, BNP Paribas and Mizuho Americas acted as co-structuring agents on the transaction. RBC Capital Markets, SMBC Nikko and Apollo Global Securities served as Joint Bookrunners, with Wells Fargo Securities, PNC Capital Markets LLC, Blackstone Securities Partners L.P. and ATLAS SP acting as Co-Managers.
Milbank LLP served as issuer counsel and Vedder Price acted as lender counsel.
About PK AirFinance
PK AirFinance is a premier specialized aircraft and aircraft engine lending business with deep expertise in the aviation finance sector. Its comprehensive origination, underwriting, structuring and syndication capabilities are delivered by a team of experienced professionals, whose extensive experience in varied products and geographies was built over several decades and industry cycles. To learn more, please visit https://www.apollopkairfinance.com/ .
Contacts
Noah Gunn
Global Head of Investor Relations
212-822-0540
Joanna Rose
Global Head of Corporate Communications
212-822-0491
