Castlelake has fully repaid its aviation asset-backed securitisation (ABS) deal Aircraft Securitisation Trust 2021-1 (CLAS 2021-1) and has priced its first ABS deal of 2026.
The 2021-issuance represents the first full repayment of any operating lease aircraft ABS to be completed since the COVID-19 pandemic.
CLAS 2021-1 was comprised of $595 million of asset-backed debt and a portfolio of 26 commercial passenger aircraft and one freighter on operating leases with 11 different lessees in 10 different countries.
Castlelake completed the repayment around two years ahead of schedule using cash flow from leases and proceeds from the sale of assets.
“This accomplishment underscores the strength of Castlelake's active investment management and our commitment to delivering results for our stakeholders,” said Castlelake partner and deputy co-chief investment officer Joe McConnell.
This is the seventh aircraft ABS that Castlelake has fully repaid or refinanced.
"With this achievement, we're once again demonstrating the strength of our servicing platform and the principles that define how we operate as an ABS issuer," said Castlelake partner and head of capital markets Armin Rothauser.
“By consistently achieving full repayments ahead of or on schedule and maintaining strong servicing capabilities, we believe Castlelake reinforces investor confidence in the ABS sector.”
The company's CLAS 2026-1 deal marked its first ABS deal of the year. The $718.5 million deal featured three tranches: A, B, and C notes.
The $718.5 million A tranche has a 5.073% coupon and a spread of Treasuries plus 145 basis points. The notes have an LTV of 72%.
The $69.9 million B tranche has a coupon of 5.762% and a spread of 215 basis points. The tranche has an LTV of 79%.
Pricing details for the $54.9 million C notes were not provided. The tranche has an LTV of 84.5%.