Apollo Aviation priced its second aircraft securitization: Apollo Aviation Securitization Equity Trust 2016-1, which will issue $510 million of asset backed notes that will be used to acquire a fleet of 32 aircraft.

AASET 2016-1 will issue three tranches of ABS notes with the following principal amounts and coupons: $395 million Class A fixed rate notes series 2016-1 at 4.875%, $80 million Class B fixed rate notes series 2016-1 at 6.500% and $35 million Class C fixed rate notes series 2016-1 at 9.197%. Apollo Aviation Management Limited, an affiliate of Apollo Aviation, will act as servicer for the transaction.

The Class A fixed rate notes series 2016-1 will be sold at a price equal to 98.57448% of their face value, with an effective yield of 5.375%. The Class B fixed rate notes series 2016-1 will be sold at a price equal to 97.96571% of their face value, with an effective yield of 7.250%. The Class C fixed rate notes series 2016-1 will be sold at a price equal to 99.99891% of their face value, with an effective yield of 9.375%.

The ABS notes to be issued by AASET 2016-1 in the transaction have not been registered under the U.S. Securities Act of 1933, as amended, and are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the U.S. to non-U.S. persons in accordance with Regulation S under the Securities Act. The ABS notes may not be sold in the U.S. absent registration under the Securities Act or pursuant to an applicable exemption from registration requirements under the Securities Act.

Founded in 2002, aviation investment manager Apollo has grown to $2.5 billion of aviation assets under management representing over 90 aircraft and 55 aircraft engines.