FTAI Aviation has announced the successful pricing of the inaugural asset-backed securitisation (ABS) issued by its Strategic Capital vehicle, FTAI MRE 2026-1.
The offering comprises US$612 million in notes backed by a portfolio of 48 A320ceo and Boeing 737NG aircraft leased to 23 airlines worldwide. FTAI MRE 2026-1 will issue two classes of investment-grade notes, with the Series A notes expected to receive ratings of Asf / A(sf) from Fitch and KBRA respectively, while the Series B notes are expected to be rated BBB+sf by Fitch. The transaction is expected to close on June 4, 2026.
The aircraft supporting the ABS are owned by FTAI’s first Strategic Capital vehicle, which completed fundraising in October 2025 with US$2.0 billion in equity commitments and currently owns 292 aircraft. According to the company, the transaction attracted strong investor demand, with both classes of notes significantly oversubscribed.
“This inaugural securitisation marks an important milestone for FTAI and our Strategic Capital vehicles as we diversify our funding sources and strengthen our presence in the capital markets,” said Kallie Steffes, Head of Strategic Capital at FTAI.
“We believe the strong investor interest reflects confidence in our differentiated investment approach within the narrow-body aircraft sector, combining FTAI’s leading engine maintenance capabilities with aircraft ownership. We are grateful to the teams at ATLAS SP Partners and Deutsche Bank for their partnership from the launch of our initial warehouse through to this ABS issuance.”
ATLAS SP Partners and Deutsche Bank acted as joint structuring agents and joint lead bookrunners for the transaction. BNP Paribas, Citigroup and PNC Capital Markets served as joint bookrunners, while Standard Chartered Bank and KeyBanc Capital Markets acted as co-managers.
