Castlelake has marketed its first aviation asset-backed securitisation (ABS) deal of 2026, CLAS 2026-1.
The $843.3 million deal, which marks Castlelake’s 12th aviation ABS overall, has three tranches: the A tranche along with subordinate B and C tranches.
The deal’s repayment dates are expected to be March 2033 and legal final maturity is March 2051 for the tranches.
The $718.5 million A tranche has an initial loan to value (LTV) ratio of 72% and is expected to be rated A by KBRA and Fitch.
The $69.9 million B tranche has an LTV of 79%. The notes were not assigned a preliminary rating from KBRA, but Fitch assigned it with an expected BBB+ rating.
The C notes total $54.9 million and have an LTV of 84.5%. The C notes were not given a rating by KBRA, while Fitch assigned them a preliminary BB+ plus rating.
Proceeds from the deal will be used to acquire a portfolio of 37 assets, including 33 narrowbodies, one E195-E2 aircraft, and four widebodies on lease to 31 lessees in 22 jurisdictions.
The assets include the one Embraer E195-E2, 17 Airbus A320-200s, two A320neo, one A321neo, as well as 11 Boeing 737-800s and one 737 MAX 8. Additionally, the portfolio’s widebodies consist of two A330-200s and two A330-300s.
The A320neo family jets, the 737 MAX 8, and the Embraer jet make up five new technology aircraft in the portfolio – making up 21.4% of its value. The weighted average age of these aircraft is around 2.7 years and their remaining lease term is around 9.3 years.
The top three lessees make up 19.7% of the portfolio by value, including Frontier at 7.2%, Volaris at 6.9%, and Cebu Pacific at 5.7%. The top three countries in the portfolio are 29.1% of the deal’s value, including Mexico at 11.1%, Indonesia at 9.7% and the US at 8.3%.
The structure of the deal includes a $2 million security deposit and liquidity facility.
Goldman Sachs is lead structuring agent and left lead bookrunner. Natixis’ New York Branch is acting as liquidity facility provider and UMB Bank is the security trustee.