Blackbird Capital 1, the joint venture established by ALC and Napier Park Global Capital in 2014, is preparing to issue an $800 million asset-backed securities deal. The deal stands out for being the first aircraft ABS deal since 2012 to feature a AA-rated tranche. With a weighted average age of 3.3 years, the aircraft in the portfolio are also substantially younger than those in recent aircraft ABS transactions. The notes consist of three tranches: a $200 million AA tranche, a $540 million A tranche and a $60 million B tranche. Kroll Bond Rating Agency (KBRA) has given preliminary ratings to the three tranches of AA, A and BBB. The initial loan-to-value (LTV) is 19.1% on the AA tranche, 70.5% on the A tranche and 76.3% on the B tranche. The proceeds will be used to purchase a fleet of 19 aircraft on lease to 16 airlines in 13 countries. The portfolio consists of single-aisle, twin-aisle and regional aircraft, which total 49.3%, 48.8% and 2.0% of the portfolio by value respectively. The AA notes amortize on an eight-year straight-line schedule while the A and B notes amortize on a 16-year straight line schedule. The top three lessees in the portfolio account for 42.3% of the value in total, including 16.1% on lease to KLM, 13.9% on lease to Air Canada and 10.9% on lease to Cathay Pacific.

Update: In November 2023, the AA tranche was fully repaid but the remaining tranches are still active.