Apollo Aviation has priced its $612 million asset backed securitisation (ABS) issue for 32 aircraft.

The $479 million A notes priced with a coupon of 3.967%, the $88.5 million B notes at 5.926% and the $44.3 million C notes at 7.385% on 25 May, a source familiar with the transaction says.

The spread is 131.7bps on the A tranche, 327.6bps on the B and 473.5bps on the C based on the 20-year US treasury bond yield curve on 25 May.

All three tranches of the AASET 2017-1 transaction mature in April 2042 but amortise on different schedules.

The A tranche has an initial loan-to-value (LTV) ratio of 65%, the B 77% and the C 83%, says Kroll Bond Rating Agency in a report.

Proceeds of the AASET 2017-1 notes will be used to purchase 32 aircraft that make up about 22% of Apollo's fleet, Kroll says. The pool is split between 27 narrowbodies, including Airbus A319s and A320s, and Boeing 737-700s and -800s, and five Airbus A330 widebodies.

Goldman Sachs is sole structuring agent, global coordinator and lead bookrunner of the AASET 2017-1 notes. DVB Bank, Deutsche Bank, Wells Fargo, Credit Agricole and Morgan Stanley are joint bookrunners.

Wells Fargo is trustee and DVB the liquidity facility provider.

Source: Cirium Dashboard