SKY Leasing Announces Closing of $503 Million Secured Notes Offering

SAN FRANCISCO, May 29, 2025 /PRNewswire/ -- SKY Leasing ("SKY"), a leading aviation investment manager, announced the closing of an issuance of $503 million of secured notes (the "Notes") by SLAM 2025-1 Limited and SLAM 2025-1 LLC ("SLAM"). SLAM expects to use a portion of the proceeds of the Notes to acquire a portfolio of 19 Airbus and Boeing aircraft valued at approximately $689 million. The portfolio features an average age of 5.3 years and a weighted average lease term of 7.2 years, with a significant focus on narrowbody aircraft (88%) and next generation aircraft (65%). SKY will act as servicer for SLAM's aircraft portfolio.

The offering consisted of one series of Notes: $503 million Series A Notes with an interest rate of 5.807%. The Series A Notes have an initial loan-to-value ("LTV") of 73.0% and were rated A2 (sf) by Moody's Investors Service ("Moody's") and A (sf) by Kroll Bond Rating Agency ("KBRA"). The Series A Notes have an initial expected maturity of 7 years and an initial expected weighted average life of 5.2 years based on the pricing case cash flow model. Affiliates of SKY acquired the E Certificates of SLAM.

"This transaction reflects SKY's continued leadership in structuring innovative, investor-aligned aviation finance solutions," said Matthew Crawford, Co-Chief Investment Officer at SKY. "The bespoke nature of this deal — combining a carefully curated portfolio with a robust capital structure — demonstrates our ability to deliver differentiated value. The strong investor response, with 3.6x final subscription levels, reinforces the market's confidence in our platform and our disciplined approach to asset selection and risk management."

SKY expects to refinance its existing warehouse debt financing facility with proceeds from the SLAM 2025-1 transaction.

MUFG, Citi, and BNP Paribas acted as joint lead structuring agents and joint lead bookrunners. BofA Securities, Deutsche Bank Securities, Fifth Third Securities, Morgan Stanley, Natixis, PNC Capital Markets LLC, and Société Générale acted as joint bookrunners on the transaction. Société Générale is the liquidity facility provider. Vedder Price P.C. acted as legal counsel to SKY, and Milbank LLP acted as legal counsel to the initial purchasers.

The Notes have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and were offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. This press release is not an offer of securities for sale in the United States. The Notes may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.

This press release shall not constitute an offer of the Notes to the public in any member state of the European Economic Area.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor will there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

About SKY Leasing
SKY Leasing ("SKY") is an alternative investment manager dedicated to providing asset-focused capital solutions to airlines globally. With a global presence across five offices in San Francisco, Dublin, New York, Miami, and Singapore, SKY leverages a 30-year history of global aviation relationships, technical asset management expertise, and a disciplined investment framework, to originate unique investment opportunities with an emphasis on seeking downside protection and stable cash flow. The company's fund management business was founded in 2019 with a minority investment from M&G Investments. As of March 2025, the company manages over $5 billion of aviation assets. For more information about SKY, visit www.skyleasing.com.

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SOURCE SKY Leasing