Castlelake out with new aviation ABS

Lauren Eldershaw
By Lauren Eldershaw April 9, 2019 14:42

Castlelake out with new aviation ABS

Castlelake has launched its eighth aviation asset-backed securitisation ABS. Castlelake Aircraft Structured Trust 2019-1 (CAST 2019-1) offers three tranches of notes secured on a portfolio of 28 aircraft on lease and four loans, secured by four aircraft, to 14 lessees/obligors located in 13 countries with initial value of approximately $1,045.3 million. The initial weighted average aircraft age of the portfolio – which consists of 29 narrowbody aircraft (71.6% by value) and 3 widebody aircraft (28.4% by value) – is approximately 8.9 years, with a weighted average remaining lease/loan term of approximately 4.5 years.

The $867.567 million ABS comprises: $679.420 million A notes, rated A by Kroll Bond Rating Agency (KBRA), with an initial loan-to-value ratio of 65%; $114.979 million B notes, rated BBB, with an initial LTV of 76%; and $73.168 BB-rated C notes with an LTV of 83%. All classes of notes have a maturity of 2039. The equity is retained by funds managed by Castlelake.

Goldman Sachs is the sole structuring agent and lead left bookrunner. Natixis is the liquidity facility provider and UMB is the trustee, security trustee and operating bank. Canyon Financial Services is the managing agent.

Lauren Eldershaw
By Lauren Eldershaw April 9, 2019 14:42