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AIP Capital and Monroe Capital Finalize $643 Million Aviation Securitization

AIP Capital and Monroe Capital have closed their inaugural aircraft asset-backed securitization, securing $643 million to finance a portfolio of 18 commercial passenger jets. The transaction, dubbed MCAV 2026-1, marks the debut of a programmatic issuance strategy for the joint venture between the two investment firms.

AIP Capital and Monroe Capital Finalize $643 Million Aviation Securitization
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The portfolio backing the debt consists of assets with a weighted average age of 5.6 years, heavily skewed toward modern technology, with 71% of the aircraft classified as next-generation models and 81% as narrowbody vessels. These jets are currently under operating leases with 12 different lessees spread across 10 global jurisdictions, providing a diversified revenue base for the securitization. The debt structure is divided into three tranches: $547 million in Class A notes, $66.5 million in Class B notes, and $29.6 million in Class C notes, which the issuer has retained. Credit ratings for the tranches range from A to BB, assigned by DBRS Morningstar, Kroll Bond Rating Agency, and Moody's Investors Service. AIP Capital will serve as the servicer for the portfolio. A consortium of financial institutions, including Deutsche Bank Securities, BNP Paribas, and Fifth Third Securities, managed the structuring and bookrunning for the deal. According to Aaron Levy, Managing Director at Monroe Capital, the successful execution underscores the firm's disciplined approach to aviation investing and the enduring demand for commercial air travel assets. The notes were offered exclusively to qualified institutional buyers and non-U.S. persons, adhering to specific regulatory exemptions under the U.S. Securities Act.

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