Castlelake Prices Castlelake Aircraft Securitization Trust 2016-1

Third ABS positions Castlelake as leader in aircraft debt financing

MINNEAPOLIS--()--Castlelake L.P., a global private investment firm managing more than $7.3 billion in assets on behalf of its clients, priced its third aircraft securitization: Castlelake Aircraft Securitization Trust 2016-1 (CLAS 2016-1) on Monday, August 1. CLAS 2016-1 totals $916 million of asset backed debt and will be used to acquire a fleet of 52 aircraft and one aircraft engine.

“Castlelake is continuing to build a best-in-class brand in the aviation debt capital markets with this third securitization,” said Rory O’Neill, managing partner and chief executive officer of Castlelake. “Castlelake’s differentiated access to debt capital continues to deliver value to the firm’s LP investors. We are proud to continue to access the ABS markets to grow our aviation business and enhance our aircraft equity investments.”

CLAS 2016-1 is comprised of three tranches with the following coupons: $715 million Class A loans at 4.45%, $130 million Class B loans at 6.15%, and $71 million Class C loans at 8.00%. The Class A loans have an initial loan-to-adjusted base value (LTV) of 64.02% and have been rated A by Standard & Poor’s (S&P) and Kroll Ratings. Class B loans have an initial LTV of 75.66% and are rated BBB by S&P and Kroll Ratings, and the Class C loans have an initial LTV of 82.02% and are rated BB by S&P and Kroll Ratings. Castlelake has issued more than $2.1 billion in aircraft ABS since beginning the program in 2014.

Castlelake will act as servicer for the transaction. Deutsche Bank Securities, Inc. and Goldman, Sachs & Co. acted as joint structuring agents for the transaction and were joined by Citigroup Global Markets Inc. as Global Coordinator and DVB Capital Markets LLC as a Co-Manager. DVB Bank SE serves as liquidity facility provider.

The loans issued by CLAS 2016-1 in the transaction have not been registered under the United States Securities Act of 1933, as amended.

About Castlelake L.P.

Castlelake L.P. is a global private investment firm focused on investments in alternative assets, sub-performing loans, dislocated industries and corporate special situations, and is an experienced leader in aircraft ownership and servicing. Castlelake’s team comprises more than 98 professionals with deep expertise, located in Minneapolis and London. Castlelake manages approximately $7.3 billion in assets on behalf of more than 110 endowments, foundations, public and private pension plans, private funds, family offices, insurance companies and sovereign wealth funds. For more information, visit www.castlelake.com.

Contacts

FleishmanHillard
Tom Laughran, 312-729-3719
Tom.Laughran@fleishman.com
or
Mike Bonifas, 312-729-3674
Mike.Bonifas@fleishman.com

Contacts

FleishmanHillard
Tom Laughran, 312-729-3719
Tom.Laughran@fleishman.com
or
Mike Bonifas, 312-729-3674
Mike.Bonifas@fleishman.com