MINNEAPOLIS--Castlelake L.P., a global private investment firm managing more than $7.4 billion in assets on behalf of its clients, today priced its second aircraft securitization: Castlelake Aircraft Securitization Trust 2015-1 (CLAS 2015-1). CLAS 2015-1 totals $713 million of asset backed debt and will be used to acquire a fleet of 54 aircraft and six aircraft engines.
“Castlelake is poised to build on the success of its first aircraft securitization trust with Castlelake 2015-1,” said Rory O’Neill, managing partner and chief executive officer of Castlelake. “We are confident that the combination of our in-house aviation investment team and their unique hands-on approach will drive significant value for investors.”
CLAS 2015-1 is comprised of three tranches with the following coupons: $529 million Class A notes at 4.703%, $105.713 million Class B notes at 5.750%, and $78.5 million Class C notes at 9.000%. The Class A notes have an initial loan-to-adjusted base value (“LTV”) of 60.2% and have been rated A- by Standard & Poor’s (S&P) and A by Kroll Ratings. Class B notes have an initial LTV of 72.2% and are rated BBB by S&P and Kroll Ratings, and the Class C notes have an initial LTV of 81.2% and are rated B by S&P and B+ by Kroll Ratings.
Castlelake will act as servicer for the transaction. Deutsche Bank Securities, Inc. and Goldman, Sachs & Co. acted as lead bookrunners for the transaction and were joined by Citigroup Global Markets Inc. and Credit Agricole Securities (USA) Inc. as joint bookrunners. Additionally, DVB Capital Markets LLC, Mitsubishi UFJ Securities (USA), Inc. and Credit Suisse Securities (USA) LLC acted as co-managers for the transaction. Crédit Agricole Corporate and Investment Bank, acting through its New York Branch serves as liquidity facility provider. The securities issued by CLAS 2015-1 in the transaction have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and, in the case of certain of the securities, outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act.
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 90 professionals with deep expertise, located in Minneapolis and London. Castlelake manages approximately $7.4 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.