Ashland Place Finance LLC, an established institutional financing platform for the commercial aerospace industry, has priced its latest aviation loan asset-backed securitization (ABS) – APL Finance 2025-1. This announcement follows the success of their inaugural ABS transaction in 2023, positioning the company as a key player in the aviation financing sector.
The APL Finance 2025-1 ABS transaction will issue $414.4 million in notes, supported by a diversified and unique collateral pool. The notes are secured by 13 narrowbody aircraft, eight freighter aircraft, two widebody aircraft, and three narrowbody host aircraft engines, all on lease to 15 different lessees across 13 jurisdictions globally.
The transaction is notable for its highly secure loan facilities, which are 100% primary origination, 100% sole lender, and 100% secured. Ashland Place, known for its robust expertise in aviation lending, will also act as the servicer on this transaction, highlighting its end-to-end involvement in the deal. The securitization features four tranches of notes, with the A-tranche through C-tranche receiving investment-grade ratings from KBRA (Kroll Bond Rating Agency).
This latest ABS offering has been oversubscribed, reflecting strong investor confidence and the attractiveness of the underlying aviation assets. The funds raised will be used to acquire a portfolio of 11 loan facilities, which consist of 26 loans, a structure that continues to reinforce Ashland Place’s solid foothold in the global aviation market.
According to Jennifer Villa, Executive Director and Group Head at Ashland Place, the company is proud to have completed its second ABS in just under two years. This new transaction emphasizes the deep expertise Ashland Place holds in aviation lending, especially as the aviation industry continues its recovery and growth following the pandemic. Villa expressed optimism about the strong demand for the ABS, which she believes signals an active future for the company in the aviation ABS market.
Villa also stated that Ashland Place is set to continue its aggressive growth trajectory in this space, taking advantage of the recovery in the aviation sector and the continued demand for financing solutions. This confidence is reflected in the scale of APL Finance 2025-1, which is the company’s largest ABS transaction to date.
The transaction is being led by a strong consortium of financial institutions, with Citi serving as the sole structuring agent. Citi, along with ATLAS SP Partners, also serves as joint lead bookrunner, while Morgan Stanley joins as a joint bookrunner. The legal representation for Ashland Place comes from Vinson & Elkins, with Milbank LLP representing Citi, ATLAS SP Partners, and Morgan Stanley.
Pivotal Corporate AMS Limited has been appointed as the Managing Agent for the transaction, overseeing key operational and administrative aspects of the deal.
As air travel continues to rebound globally, asset-backed securitizations in the aviation sector are seeing growing interest from investors. The sector has proven resilient, with strong demand for aircraft financing and a continued need for innovative capital solutions to support aviation operators. Aviation asset-backed securities (ABS) provide a unique opportunity for investors to gain exposure to the growing aviation market, backed by highly secure and income-generating assets.
Ashland Place Finance’s strategic focus on primary-originating loans, sole lending, and fully secured transactions sets it apart in a competitive market. By offering such a high-quality asset pool, the company continues to attract investors seeking stability and long-term returns.
With the successful pricing of APL Finance 2025-1, Ashland Place Finance looks set to continue its rapid growth in the commercial aviation financing space. The company’s deep expertise and strong track record in aviation lending position it well for future expansion, particularly as the global aviation sector seeks new avenues for capital raising.
As Ashland Place continues to be an active issuer in the aviation ABS market, its innovative approach and solid relationships with global financial institutions will likely drive more successful transactions in the future. The company’s continued focus on strong collateral-backed transactions ensures that it remains a trusted partner for both institutional investors and aviation operators seeking financing solutions.
In an ever-evolving sector, Ashland Place Finance’s leadership in aviation ABS transactions is helping to shape the future of aviation financing. The company is committed to providing flexible and innovative financing solutions that support the continued growth and recovery of the global aviation industry.
Ashland Place Finance LLC is a subsidiary of Davidson Kempner Capital Management LP, specializing in providing innovative capital solutions for the global commercial aerospace industry. The company is known for its expertise in aviation loan asset-backed securitizations, providing financing solutions to support the growth of aviation operators worldwide.
SOURCE: Ashland Place
