Merit AirFinance Prices $817 Million Loan ABS

NEW YORK, March 16, 2026 /PRNewswire/ -- Merit AirFinance, L.P. ("Merit" or "the company"), an aviation lending company focused on providing customized debt capital solutions to airlines and leasing companies, today announced that it priced an $817 million loan asset-backed securitization (ABS), MERIT 2026-1, marking the company's first issuance under its MERIT shelf and an important milestone in its capital markets strategy.

The MERIT 2026-1 offering consists of $461 million of Class A notes assigned AAA ratings by both Fitch Ratings Service and Morningstar DBRS. Other tranches were retained by private investors. The notes carry a fixed coupon of 4.852% yielding 4.9%, and will be used to finance a diversified portfolio of 97 secured aviation loans from 10 distinct facilities with 34 underlying lessees. The portfolio reflects a seasoned asset base, with a weighted average asset age of 10.8 years and a weighted average loan maturity of 6.8 years.

At pricing on March 10, 2026, MERIT 2026-1 achieved the second lowest Class A pricing spread in aviation ABS/CLO history, according to bank reports, underscoring strong investor demand and effective execution despite recent market volatility.

"We are grateful for the robust investor interest in this transaction, especially given the current backdrop of market volatility," said Patrick Mahoney, President of Merit. "We believe the pricing outcome reflects the quality and diversification of the underlying portfolio, as well as the strength of our investor relationships, and we look forward to building on this foundation as we continue to scale the Merit platform and seek to establish ourselves as a programmatic issuer."

Merit recently announced it had closed or committed to approximately $1.3 billion of financing across 11 transactions since the company's launch in August 2025. The successful execution of MERIT 2026–1 further supports the company's strategy to scale its aviation lending platform by providing tailored financing solutions to global airlines and leasing companies.

Merit will act as servicer for the transaction. BNP Paribas is the lead structuring agent and joint lead bookrunner alongside Goldman Sachs & Co. LLC. The notes were offered only to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S. The notes were not registered under the United States Securities Act of 1933, as amended (the "Securities Act"), and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

Important Notice Regarding Past Performance and Forward Looking Statements

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to, statements relating to future operations. Words such as "believe(s)" and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. Merit AirFinance can give no assurance that their expectations will be attained. There are important factors that could cause actual results, level of activity, performance or achievements to differ from the results, level of activity, performance or achievements expressed or implied in the forward looking statements. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this press release may not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Merit AirFinance expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Merit AirFinance's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based. Further to this, past performance is not an indication or guarantee of future results and as such, there can be no guarantee that historical trends will continue.

About Merit AirFinance

Merit AirFinance is an aviation lending company focused on providing customized debt capital solutions to airlines and leasing companies for new and used commercial aviation assets. Merit originates, underwrites and structures aviation credit ranging from single-asset loans to large facilities. The Merit AirFinance team consists of experienced aviation finance professionals who embrace a solutions-oriented approach and believe in the value of long-term relationships. For more information, visit https://www.meritairfinance.com/.

Contact

Merit AirFinance
[email protected] / [email protected]

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SOURCE Merit AirFinance