NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of loans (the “Loans”) issued by Castlelake Aircraft Securitization Trust 2016-1.
Proceeds from the sale of the Loans will be used to purchase a fleet of 52 aircraft and one aircraft engine. The aircraft and engine in the portfolio are initially leased to 20 lessees located in 17 countries with an initial total value of approximately $1,116.9 million.
This transaction represents the third securitization for Castlelake, L.P. (“Castlelake” or the “Company”). Castlelake was founded in 2005 with a focus on mid-life and end-of-life aviation assets. In total, the Company has approximately $7.6 billion in assets under management, of which approximately $2.5 billion has been deployed within the aviation sector. As of March 31, 2016, Castlelake has a team of 32 individuals focused on aviation finance with an owned or managed fleet consisting of 238 aircraft.
The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Loans in the event of weak performance.
KBRA analyzed the transaction using the Aviation ABS Methodology published on May 15, 2015.
For complete details on the analysis, please see KBRA’s Presale Report, Castlelake Aircraft Securitization Trust 2016-1, which was published today at www.kbra.com.
The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.
| Class | Rating | Aggregate Loan Amount | |||||||||
| Class A Loans | A(sf) | $715,000,000 | |||||||||
| Class B Loans | BBB(sf) | $130,000,000 | |||||||||
| Class C Loans | BB(sf) | $71,000,000 | |||||||||
Related Publications: (available at www.kbra.com)
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KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).
