Inside the Portfolio: An Aviation Services Refinancing
As we begin to share select examples from the Garrington Private Credit portfolio, our objective is to provide greater transparency into how capital is deployed across operating businesses. Each investment represents a distinct set of operating dynamics, counterparties, and collateral profiles. What remains consistent is our underwriting approach, focus on senior secured structures, and reliance on tangible collateral.
The following example illustrates how these principles were applied in the aviation services sector.
Business Overview
The company is a U.S.-based aviation services provider offering storage, maintenance, overhaul, and related support services for aircraft and engines. The business manages hundreds of millions of dollars of client-owned aviation assets on behalf of commercial aviation counterparties.
Financing Context
The company sought financing as part of a refinancing process following a change in its prior banking relationship. A merger involving its existing bank lender resulted in the elimination of the sponsor-backed financing group under which the facility had been structured. While the underlying business continued to represent a stable operating platform, the change in lender structure created the need to replace existing capital.
Garrington was introduced to the opportunity through its origination network as part of this refinancing process.
Transaction Structure
Garrington provided an asset-based facility consisting of a revolving line of credit and an equipment term loan. The structure was designed to align with the company’s working capital needs while remaining firmly secured against a diversified collateral base.
The facility was supported by:
- Accounts receivable
- Appraised equipment specific to aviation servicing operations
- Inventory provided as additional collateral support
Underwriting Considerations
Several factors contributed to our comfort with the transaction.
The company is an established operator providing mission-critical services within the aviation ecosystem. Its accounts receivables are supported by a diversified base of counterparties, including large air carriers and international logistics providers. Importantly, the company maintains physical possession of client aircraft and engines, with the value of these assets materially exceeding the outstanding receivables.
The equipment term loan was supported by third-party appraisals of specialized aviation servicing equipment. While purpose-built, this equipment is widely used across the aviation services industry and would be valued by multiple market participants. Inventory provided additional collateral coverage within the structure.
In connection with the refinancing, the company’s sponsor made a meaningful equity contribution, reinforcing alignment and demonstrating continued support for the business.
Post-Closing Outcome
Following the closing of the facility, management was able to refocus on day-to-day operations and longer-term growth initiatives. Liquidity improved under the new structure, providing greater flexibility to pursue new projects and evaluate opportunistic asset acquisitions as they arise. Subject to post-closing adjustments, the potential inclusion of additional receivables within the borrowing base may further enhance liquidity over time.
Portfolio Perspective
This investment reflects the type of opportunities that can emerge as traditional bank capital evolves. Through a broad origination network and a consistent focus on asset-backed, senior secured structures, Garrington seeks to construct a diversified portfolio built around tangible collateral, disciplined underwriting, and downside protection
