HALO AirFinance, a joint venture between GA Telesis and Tokyo Century, priced HALO AirFinance 2026-1 (HALOAN 2026-1), a $390.2 million aviation loan asset-backed securitization and the first ABS issuance from the HALO platform.
The transaction issued four classes of fixed-rate secured notes rated by KBRA with a legal final maturity of August 2041:
- $295.37 million of Class A Notes (rated ‘AA’)
- $35.67 million of Class B Notes (rated ‘A’)
- $28.62 million of Class C Notes (rated ‘BBB’)
- $30.54 million of Class D Notes (rated ‘BB-’)
Proceeds of the oversubscribed offering were used to acquire a portfolio of 33 loans with an aggregate remaining balance of approximately $427.2 million and weighted average remaining loan term of approximately 3.6 years. The loans are secured by 14 narrowbody aircraft, two widebody aircraft, two freighter aircraft and 15 engines utilized by 21 operators in 14 jurisdictions. The weighted average age of the underlying assets, excluding the engines, is approximately 15.6 years, which is complementary to GA Telesis’ expertise.
At pricing on Aug. 6, 2026, the HALOAN 2026-1 notes were oversubscribed (4x+) and achieved the tightest spread for an AA-rated, senior tranche from an inaugural aviation loan ABS issuer, underscoring strong investor demand and effective execution.
“This milestone transaction marks an important step in HALO’s growth strategy and confirms strong investor confidence in our platform, demonstrated by the considerable oversubscription for the notes, against challenging and volatile market conditions,” Marc Cho, co-head and managing director of HALO, said. “This successful issuance establishes a scalable capital markets execution platform and strengthens our ability to serve airlines, lessors and investors worldwide.”
Takamasa Marito, co-head of HALO and managing director of Tokyo Century, added, “This transaction is a reflection of the strong platform that GA Telesis and Tokyo Century have built, and we look forward to providing additional innovative financing solutions to our customers and returning to the capital markets.”
Citi acted as sole structuring agent and lead bookrunner, with Mizuho and Citizens serving as joint bookrunners. Vedder Price acted as issuer counsel while Milbank acted as underwriter counsel. Phoenix American Financial Services will act as managing agent and UMB Bank as trustee.
