US-based aircraft leasing company Castlelake Aviation has closed a $635 million incremental term loan B facility which it will use to refinance existing debt and for general corporate purposes.
The facility has a maturity date of October 2027 and was priced at SOFR plus 2.75% with a SOFR floor of 0.5%, priced at 99.25% representing an 0riginal issue discount of 0.75%.
"We are delighted to have successfully closed this incremental term loan B, providing Castlelake Aviation Limited with meaningful flexibility and access to capital to continue growing its portfolio," said Ronan Kelleher, the lessor's chief financial officer.
"With over three billion dollars of total financing and demonstrated access to the capital markets, high yield and term loan B market, we believe Castlelake Aviation Limited is well positioned to continue on a path to achieving our goal of investment grade status," Kelleher added.
Castlelake Aviation was set up in 2021 and has a fleet "composed primarily of next generation, narrow-body aircraft on long-term leases to leading international airlines".
The lessor said it "directly benefits" from its ties with Castlelake, a global alternative investment firm that has invested around $17bn in aviation.