Apollo Global Management Investor Day Presentation Deck
ABS Case Study (Continued): Wheels Fleet Financing Facility
150,000+ VEHICLES AND
RESPECTIVE LEASES ($2.5B+)
CREDIT ENHANCEMENT & LOSS COVERAGE
VS. ASSET VALUE²
●
Guaranteed
Residual Value of Vehicle
+
Diversified, Blue-Chip Customer
Lease Payments
$ $ ($
Class A Lenders -
Tranche Rated 'AAA'
MASTER TRUST
ABS SECURITIZATION
Class B Lenders -
Tranche Rated 'AA'
Class C Lenders -
Tranche Rated 'A'
Tranche Rated 'BBB'
Second Loss:
Athene Equity
Retained Equity
In October 2021, Athene (through Donlen) acquired Wheels Fleet
leasing and it $3.4B of assets
Transaction also provided Athene a forward flow of assets with
superior spread (+150bps) and loss track record (6bps peak
annualized losses in past 20 years) versus liquid investment
grade corporates
●
Blended:
$2.0BN
L + 0.81%
$45MM
6.0 - 6.5%
$70MM
Over 85% of customers are investment grade
and the leases are structured as "triple net"
(lessees required to pay for maintenance, tax,
title, registration fees, and insurance) with
guarantees to mitigate residual value risk
●
13.0%
10.0%
6.0%
4.5%
4.0%
75X COVERAGE VS.
PEAK LOSSES
67X COVERAGE VS.
PEAK LOSSES
Back-end collateral of well-maintained
vehicles that obtain a premium at auction
and are highly commoditized; Athene
utilizes a master trust ABS structure to
enhance diversity, credit protection
and liquidity
Note: Case study is presented for illustrative purpose only. There is no guarantee that similar transactions will be available in the future, or, if available, achieve similar results 1. Metrics are based on WFLF 2022-A facility and on a fully funded basis. Ratings are based on WFLF 2021-A facility. 2. Credit Enhancement is consistent with
Wheels 2022-1 facility which includes Subordination, Overcollateralization and Reserve Account.
APOLLO RETIREMENT SERVICES BUSINESS UPDATE 2022
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