Marathon Asset Management, L.P., a global credit manager, announced the closing of MAST 2022-1, its inaugural aircraft securitization. The transaction was privately issued and resulted in the placement of $304 million of debt backed by a pool of 15 Airbus and Boeing narrowbody aircraft, leased to 10 different airlines across nine countries. The average age and lease term of the aircraft are 6.0 and 6.4 years, respectively.

This transaction builds on Marathon’s longstanding presence in transportation finance, supported by its highly experienced and dedicated professionals, who have invested through economic cycles and a variety of business environments. The investment team has invested in 140 aircraft assets to date and focuses on sourcing, underwriting and managing transportation equipment across the aviation, maritime and intermodal transportation sectors. Marathon’s aviation finance strategy targets the most in-demand commercial aircraft, specifically new-technology and in-production aircraft on lease to the airline industry.

“This transaction was a demonstration of the capabilities of the team, our experience in aircraft leasing investments, and the quality of the equipment,” said Joseph Thorstenson, Managing Director and head of Marathon’s aviation strategy. “As the global aviation industry continues to navigate an environment marked by rebounding traveler demand and a shortage of the most in-demand aircraft, we look forward to continuing to find ways to invest in the space and deliver value for our investors.”

“Our aircraft team has continued to invest through the cycle, with a focus on in-demand equipment on triple net lease. This transaction demonstrates Marathon’s strong reputation, aviation and capital markets experience, and ability to innovate,” said Jason Friedman, Marathon’s Global Head of Business Development.

MAST 2022-1 was the first aircraft securitization issued since June 2022 and was structured with a senior tranche of investment grade debt, A- rated by Kroll Bond Rating Agency. Funds advised by Marathon will retain the non-senior tranches of the securitization.

Airborne Capital will act as servicer for the transaction. Mizuho acted as placement agent.