Acting on MC Aviation 2026-1 $643m aircraft ABS

We acted as Irish and Cayman Islands counsel to MC Aviation 2026-1 Limited on the successful closing of the MC Aviation 2026-1 aircraft ABS, the inaugural US$643m aircraft asset-backed securitisation (ABS) in connection with the  aircraft leasing venture between AIP Capital and Monroe Capital.
 
The transaction will be used to finance a diversified portfolio of 18 commercial passenger aircraft on operating leases to 12 different lessees across 10 jurisdictions. The ABS comprises US$643m of asset-backed debt and finances an aircraft portfolio with a weighted average aircraft age of 5.6 years and a remaining lease term of approximately 6.9 years.
 
AIP Capital will act as servicer for the transaction. Deutsche Bank Securities, BNP Paribas and Fifth Third Securities will act as Co-Structuring Agents and Joint Lead Bookrunners, Citigroup as Joint Lead Bookrunner, Natixis and BMO Capital markets as bookrunners and KeyBanc Capital Markets as Co-Manager. Natixis will act as liquidity facility provider and UMB Bank, N.A. as trustee, security trustee and operating bank. 
 
Our cross-border team was led by partner Killian McSharry in Ireland and partner Sarah Humpleby in the Cayman Islands, providing Irish and Cayman Islands legal advice in connection with the transaction.
 
We have acted on the MC Aviation platform, an aircraft leasing venture between AIP Capital and Monroe Capital, since its establishment in 2025. 
 
MC Aviation 2026-1 represents a significant milestone for the platform and demonstrates continued investor appetite for high-quality aviation asset-backed financings.
 
Killian McSharry, partner in our Asset Finance team in Ireland, said:
 
'We are delighted to have advised AIP Capital and Monroe Capital on this landmark transaction. The successful execution of MC Aviation 2026-1 highlights the strength of the MC Aviation platform and, more broadly, the continued strength of the aircraft ABS market.'
 
'This transaction demonstrates our ability to support clients on complex, multi-jurisdictional aviation finance and securitisation transactions, drawing on the combined expertise of our teams in Ireland and the Cayman Islands. We are proud to have supported AIP Capital and Monroe Capital on this important milestone for the MC Aviation platform.'
 
Sarah Humpleby, partner in our Cayman Islands Asset Finance team, added:
 
'MC Aviation 2026-1 marks an important milestone for the platform and demonstrates the continued depth of investor appetite for high-quality aviation asset-backed financings. We were pleased to work with AIP Capital, Monroe Capital and the wider transaction teams to bring the inaugural issuance to a successful close.'
 
The transaction further strengthens our track record advising on complex aviation finance transactions across Ireland and the Cayman Islands, including aircraft acquisitions, leasing platforms, warehouse facilities, securitisations and other structured finance arrangements. Our teams continue to support many of the industry's leading lessors, lenders, investors and asset managers on innovative aviation finance matters worldwide.