As the anticipated repayment date (ARD) for some of the S&P Global Ratings-rated aircraft lease-backed securitization transactions is fast approaching, we analyzed 16 outstanding transactions, forecasting the values of selected metrics within our criteria framework that we believe could influence the transactions' ability to refinance or call notes upon ARD. Most transactions collateralized by aircraft leases incorporate an ARD, the date when the issuer is incentivized, but not obligated, to refinance or call the transaction and pay down all outstanding debt. If the debt remains outstanding after the ARD, structural features of the transaction accelerate the amortization of the remaining debt, provided sufficient funds are available. Upon ARD, noteholders are typically also entitled to a step-up interest rate (typically 2%
