HALO AirFinance Prices $390M Inaugural Aviation Loan ABS

HALO AirFinance priced its inaugural aviation loan asset-backed securitization (ABS) at $390.2 million, achieving an oversubscription rate of more than four times the offering size. The transaction, named HALO AirFinance 2026-1 (HALOAN 2026-1), secured the tightest spread for an AA-rated senior tranche from a first-time aviation loan issuer.

Announced in a press release on August 12, 2026, the pricing took place on August 6, 2026. HALO AirFinance operates as a joint venture between GA Telesis, LLC and Tokyo Century Corporation. The successful issuance establishes a new capital markets execution platform for the venture to fund its aviation lending activities.

Portfolio composition and tranche structure

The HALOAN 2026-1 notes are backed by a portfolio of 33 aviation loans with an aggregate remaining balance of $427.2 million. The loans feature a weighted average remaining term of 3.6 years.

The underlying assets securing the loans include 14 narrowbody Commercial-Aircraft, two widebody aircraft, two freighter aircraft, and 15 aircraft engines. These assets are utilized by 21 operators across 14 jurisdictions. Excluding the engines, the weighted average age of the aircraft is 15.6 years. The legal final maturity date for the notes is set for August 2041.

The $390.2 million issuance is divided into four tranches, rated by Kroll Bond Rating Agency (KBRA):

• Class A Notes: $295.37 million, rated AA
• Class B Notes: $35.67 million, rated A
• Class C Notes: $28.62 million, rated BBB
• Class D Notes: $30.54 million, rated BB-

Market reception and advisory roles

The heavy oversubscription indicates robust investor appetite for aviation-backed debt. Citi acted as the sole structuring agent and lead bookrunner for the transaction, with Mizuho and Citizens serving as joint bookrunners.

“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,” said Marc Cho, Co-Head and Managing Director of HALO AirFinance.

Takamasa Marito, Co-Head of HALO AirFinance and Managing Director of Tokyo Century Corporation, noted that the transaction reflects the strength of the platform built by the two parent companies. He added that the joint venture plans to return to the capital markets to provide additional financing solutions for Airlines, lessors, and investors.

Other entities involved in the transaction include Vedder Price as issuer counsel, Milbank as underwriter counsel, Phoenix American Financial Services, Inc. as the managing agent, and UMB Bank, NA serving as the trustee.

AirPro News analysis

The successful pricing of HALOAN 2026-1 demonstrates that institutional investors remain highly receptive to aviation debt, particularly when structured by established industry players. Achieving the tightest spread for an inaugural AA-rated senior tranche in this asset class suggests that the market views the GA Telesis and Tokyo Century joint venture as a mature, lower-risk platform, despite this being its first asset-backed securitization. We expect this strong reception will encourage HALO AirFinance to utilize the ABS market as a primary funding mechanism for future loan portfolio growth.

Sources: GA Telesis