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GA Telesis’ HALO AirFinance Prices $390 Million Inaugural Aviation Loan ABS

GA Telesis’ HALO AirFinance Prices $390 Million Inaugural Aviation Loan ABS
Successful Launch of HALO AirFinance 2026-1
HALO AirFinance, a joint venture between GA Telesis, LLC and Tokyo Century Corporation, has successfully priced its inaugural aviation loan asset-backed securitization (ABS), HALO AirFinance 2026-1 (HALOAN 2026-1), raising $390.2 million. This transaction, which closed on August 6, 2026, represents a significant milestone for the HALO platform and a key component of the company’s broader growth strategy.
The ABS issuance comprises four classes of fixed-rate secured notes, all rated by Kroll Bond Rating Agency (KBRA) and carrying a legal final maturity date of August 2041. The notes include $295.37 million of Class A Notes rated 'AA', $35.67 million of Class B Notes rated 'A', $28.62 million of Class C Notes rated 'BBB', and $30.54 million of Class D Notes rated 'BB-'. The offering was oversubscribed by more than four times, reflecting strong investor demand.
Portfolio Composition and Market Context
Proceeds from the offering were deployed to acquire a portfolio of 33 loans with an aggregate remaining balance of approximately $427.2 million and a weighted average remaining term of 3.6 years. The underlying collateral is diversified, consisting of 14 narrowbody aircraft, 2 widebody aircraft, 2 freighter aircraft, and 15 engines. These assets are operated by 21 airlines across 14 jurisdictions. The weighted average age of the aircraft, excluding engines, is approximately 15.6 years, consistent with GA Telesis’ expertise in managing mature aviation assets.
Despite ongoing challenges in the global economic environment that have affected demand for aviation loans, HALO AirFinance’s debut ABS achieved the tightest spread for an AA-rated senior tranche from a first-time aviation loan ABS issuer. This outcome underscores robust investor confidence and validates the platform’s execution capabilities, placing HALO alongside established players in the sector.
Strategic Significance and Industry Positioning
Marc Cho, Co-Head and Managing Director of HALO, emphasized the importance of the transaction, noting that it marks a critical step in the company’s growth trajectory and demonstrates strong investor confidence amid volatile market conditions. Takamasa Marito, Co-Head of HALO and Managing Director of Tokyo Century, highlighted the strength of the joint venture’s platform and expressed commitment to delivering innovative financing solutions and returning to the capital markets.
While competitor reactions have not been publicly detailed, HALO’s strategic focus on direct lending to airlines and lessors positions the joint venture competitively within the aviation finance landscape.
Transaction Participants and Corporate Profiles
Citi acted as the sole structuring agent and lead bookrunner for the transaction, with Mizuho and Citizens serving as joint bookrunners. Legal counsel was provided by Vedder Price for the issuer and Milbank for the underwriters. Phoenix American Financial Services, Inc. served as Managing Agent, and UMB Bank, NA was appointed Trustee.
HALO AirFinance combines the strengths of GA Telesis and Tokyo Century to offer tailored lending solutions to airlines, lessors, and investors, covering a broad spectrum of aircraft and engine maturities. The platform benefits from GA Telesis’ extensive aerospace ecosystem and Tokyo Century’s global reach.
GA Telesis is a global leader in aerospace solutions, specializing in aftermarket services and lifecycle management, with operations spanning 54 locations in 30 countries across six continents.

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