Castlelake has priced its third aircraft securitization: Castlelake Aircraft Securitization Trust 2016-1 (CLAS 2016-1). 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 and Goldman Sachs acted as joint structuring agents for the transaction and were joined by Citi as Global Coordinator and DVB as a Co-Manager. DVB Bank serves as liquidity facility provider.