Kroll assigns preliminary ratings to Castlelake’s $785.5 million security

Kroll assigns preliminary ratings to Castlelake’s $785.5 million security

Kroll Bond Rating Agency has given preliminary ratings to Castlelake’s $785,500,000, three tranche Aircraft Structured Trust 2017-1.

This is the fourth asset-backed securitization for Castlelake. Proceeds from the loans will be used to purchase a fleet of 43 aircraft on lease to 15 lessees in 11 different countries valued at around $940.7 million.

The portfolio comprises mainly American Airlines, Qatar Airways, WestJet and Yamal aircraft and has an average age of 13 years. 76.9% of the portfolio are narrowbodies and 23.1% are four widebody A330-300s.

The class A loan, valued at $616,000,000 was rated A, the class B loan valued at $90 million was rated BBB and the class C loan worth $79.5 million was rated BB-. As these are preliminary ratings, they are subject to change.

IssuerCastlelake Aircraft Securitization Trust 2017-1
Size: $785.5 million
Assets: 43 aircraft

Class A
Size: $616 million
Initial LTV: 65.5%
Rating: A (Kroll)
Final Maturity: July 2042

Class B
Size: $90 million
Initial LTV: 75.1%
Rating: BBB (Kroll)
Final Maturity: July 2042

Class C
Size: $79.5 million
Initial LTV: 83.5%
Rating: BB- (Kroll)
Final Maturity: July 2042

Servicer: Castlelake
Joint structuring agents: Deutsche Bank Securities Inc. and Citigroup Global Markets Inc.
Liquidity facility provider: Natixis S.A., acting through its New York Branch
Managing Agent: Phoenix American Financial Services
Trustee and Facility Agent: Wells Fargo Bank
Borrower type: Aircraft leasing company
Borrower country: US

Alex Baldwin
By Alex Baldwin July 7, 2017 11:18