Key Takeaways
- • Monroe Capital and AIP Capital closed MCAV 2026-1, a $643.0 million aircraft asset-backed securitization, the inaugural transaction from their aviation leasing venture (MC Aviation).
- • The deal is secured by 18 commercial aircraft leased to 12 airline operators across 10 jurisdictions, with an aggregate appraised value of approximately $739 million.
- • The notes comprise approximately $547.0 million Class A, $66.5 million Class B, and $29.6 million Class C, rated by Moody's, KBRA, and DBRS Morningstar.
- • The portfolio carries a weighted average aircraft age of about 5.6 years and a weighted average remaining lease term of about 6.9 years, per the announcement.
- • AIP Capital will remain servicer, and Deutsche Bank Securities, BNP Paribas Securities and Fifth Third Securities served as Co-Structuring Agents and Joint Lead Bookrunners.
Summary
Monroe Capital LLC and AIP Capital announced the successful closing of MCAV 2026-1 ("MC Aviation"), a $643.0 million aircraft asset-backed securitization, according to a Business Wire release. The transaction is the first issuance from the Monroe-AIP aviation leasing venture, which was launched in 2025 to build a diversified global aircraft leasing portfolio combining Monroe's investment capabilities with AIP's aviation asset management and servicing expertise.
The collateral consists of 18 commercial aircraft leased to 12 airline operators across 10 jurisdictions, with an aggregate appraised value of approximately $739 million. The portfolio is predominantly narrow-body aircraft leased to carriers in Europe, Asia, the Middle East, Africa and Latin America, with a weighted average aircraft age of approximately 5.6 years and a weighted average remaining lease term of approximately 6.9 years.
The capital structure included approximately $547.0 million of Class A Notes, $66.5 million of Class B Notes and $29.6 million of Class C Notes. The notes received ratings from Moody's, KBRA and DBRS Morningstar, and the release states the transaction was supported by a diverse group of institutional investors.
Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Fifth Third Securities, Inc. acted as Co-Structuring Agents and Joint Lead Bookrunners. Citigroup Global Markets Inc. served as Joint Lead Bookrunner, with Natixis Securities Americas LLC and BMO Capital Markets Corp. as Bookrunners and KeyBanc Capital Markets Inc. as Co-Manager. AIP Capital will continue to act as servicer for the platform.
Aaron Peck, Managing Director and Co-Head of Alternative Credit Solutions at Monroe, described the deal as an important milestone for the group's asset-backed finance capabilities. Aaron Levy, Managing Director at Monroe, cited strong asset fundamentals, favorable supply-demand dynamics and continued growth in global air travel as reasons the firm remains constructive on commercial aviation. Jared Ailstock, Managing Partner of AIP, said the transaction reflects the quality and diversification of the underlying portfolio. The deal sits within Monroe's Specialty Finance division, which also covers hard-asset strategies such as real estate, digital infrastructure and equipment finance.
The collateral consists of 18 commercial aircraft leased to 12 airline operators across 10 jurisdictions, with an aggregate appraised value of approximately $739 million. The portfolio is predominantly narrow-body aircraft leased to carriers in Europe, Asia, the Middle East, Africa and Latin America, with a weighted average aircraft age of approximately 5.6 years and a weighted average remaining lease term of approximately 6.9 years.
The capital structure included approximately $547.0 million of Class A Notes, $66.5 million of Class B Notes and $29.6 million of Class C Notes. The notes received ratings from Moody's, KBRA and DBRS Morningstar, and the release states the transaction was supported by a diverse group of institutional investors.
Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and Fifth Third Securities, Inc. acted as Co-Structuring Agents and Joint Lead Bookrunners. Citigroup Global Markets Inc. served as Joint Lead Bookrunner, with Natixis Securities Americas LLC and BMO Capital Markets Corp. as Bookrunners and KeyBanc Capital Markets Inc. as Co-Manager. AIP Capital will continue to act as servicer for the platform.
Aaron Peck, Managing Director and Co-Head of Alternative Credit Solutions at Monroe, described the deal as an important milestone for the group's asset-backed finance capabilities. Aaron Levy, Managing Director at Monroe, cited strong asset fundamentals, favorable supply-demand dynamics and continued growth in global air travel as reasons the firm remains constructive on commercial aviation. Jared Ailstock, Managing Partner of AIP, said the transaction reflects the quality and diversification of the underlying portfolio. The deal sits within Monroe's Specialty Finance division, which also covers hard-asset strategies such as real estate, digital infrastructure and equipment finance.
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