Moody's Investors Service (Moody's) has assigned a provisional rating to the class C notes to be issued by Castlelake Aircraft Structured Trust 2021-1 (CLAS 2021-1) (see here for the initial issuance of A and B notes under CLAS 2021-1).
CLAS 2021-1 plans to issue to class C notes on 10 February, and previously issued class A and B notes on 28 January. CLAS 2021-1 used the proceeds from the issuance of the CLAS 2021-1 class A and B notes to acquire the series A and B AOE notes, and will use the proceeds from the issuance of the CLAS 2021-1 class C notes to acquire the series C AOE notes (together with the series A and B AOE notes, the AOE notes).
The AOE notes are or will be issued by each of CLSec Holdings 20 DAC and CLSec Holdings 21 LLC, the two underlying AOE issuers, one incorporated under Irish law and the other under Delaware law. In turn, the AOE issuers will use the class C AOE note proceeds, along with the class A and class B AOE note proceeds, to acquire the initial assets from funds affiliated with and managed by Castlelake through the acquisition of contribution entities that either directly or indirectly own, or will acquire, the 27 aircraft subject to the initial leases. The AOE issuers expect to acquire the initial assets during the 270-day contribution period after the transaction's closing date.
The class C notes have a Moody's CLTV ratio of 104.3%. The class C CLTV ratio would be materially lower, at around 87.7%, after reflecting the projected end of lease (EOL) payments, discounted at the weighted average note rate. Moody's assessed value reflects the minimum of several third-party appraisers' initial half-life market values, plus a maintenance adjustment provided by morten beyer and agnew (mba).