Stonepeak and Bellinger Complete First Securitization of Largely Syndicated Aircraft Loans in Aviation Industry
NEW YORK & SYDNEY – (COMMERCIAL THREAD) – Stonepeak Partners LP (“Stonepeak”), a leading alternative investment firm specializing in infrastructure and real estate assets, and Bellinger Asset Management (“Bellinger”), an investment management firm focused on he origination and management of investments in aviation, carried out the first securitization of aircraft loans largely syndicated in the aviation sector. SALT 2021-1 Trust (the “Issuer”) issued a total of US $ 893.477 million of loan-backed notes guaranteed by 156 aircraft operated by 45 airline operators located in 29 jurisdictions. The portfolio’s underlying credit counterparties include leading leasing companies and airlines.
The transaction represents the successful refinancing of the first joint investment made by Stonepeak and Bellinger since the launch of the diversified and independent aviation investment platform in May 2021. The transaction used an ABS rating structure and methodology of ‘traditional aircraft, but adopted CLO technology to offer investors improved structural characteristics and protections. Five tranches of guaranteed notes were issued, with the three most senior tranches having received investment grade ratings.
The offer, which represents the largest securitization of US aviation since the start of the COVID-19 pandemic, has been more than three times oversubscribed. The funds managed by the affiliates of Stonepeak and Bellinger will retain the capital of the SALT 2021-1 transaction, and Bellinger Loan Management Pte. Limited, a subsidiary of Bellinger, will act as Servicer for the loan portfolio.
Luke Taylor, Senior Managing Director and Executive Committee Member of Stonepeak, said: “We are very pleased to have completed our first asset-backed securitization in the aviation industry. The SALT 2021-1 transaction is an important step in the growth of our aerospace investment platform with Bellinger. ”
Kyu Dong-Yu, Managing Director and Head of Aviation at Stonepeak, said, “We are delighted to bring the first securitization of public aircraft loans to market and to open a new funding channel for the industry. We see this as a transformative transaction both for the development of our private aviation credit strategy and for the aviation industry in general. We look forward to identifying additional opportunities to fund transactions using this innovative structure. ”
René Mansveld, Managing Partner of Bellinger, said: “We believe that private credit will play an increasingly important role in aviation finance as some traditional aviation finance banks either pull out of the sector or close themselves out. focus on their core strategic relationships. Access to efficient, long-term, co-financed capital and a broad base of institutional investors is essential to the success of any private credit strategy in the aviation sector. With the SALT 2021-1 transaction, we used a mix of traditional aircraft ABS and CLO technology to create a new offering that was very well supported by institutional investors. We are well positioned to replicate this technology for future transactions. ”
Goldman Sachs & Co. LLC and Deutsche Bank Securities Inc. acted as structuring agents and co-leads of the transaction and Citi and Mizuho Securities as bookkeepers. Kroll Bond Rating Agency, LLC was the sole rating agency on the transaction. Allen & Overy LLP served as legal counsel to the Issuer and Milbank LLP served as legal counsel to the Co-Lead Initial Purchasers.
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $ 39 billion in assets under management. Through its investments in defensive companies and sustainable assets globally, Stonepeak aims to create value for its investors and the companies in its portfolio, and to have a positive impact on the communities in which it operates. Stonepeak sponsors private equity and credit oriented investment vehicles. The company provides capital, operational support and a committed partnership to sustainably increase investments in its target sectors, including communications, energy transition, electricity and renewable energies, transport and logistics, and water. Stonepeak is headquartered in New York with offices in Houston, Austin and Hong Kong. For more information, please visit https://stonepeakpartners.com.
Founded in 2008 and based in Sydney, Bellinger is a private investment management firm that manages investments in alternative assets on behalf of its wholesale and institutional clients. Bellinger’s affiliate, Bellinger Aviation, was established in Singapore in 2013 as a full-service aviation investment manager. Bellinger Aviation provides aviation industry and asset expertise in all key disciplines including investment origination and analysis, lease management, technical asset management, aircraft remarketing, law and finance.