Castlelake, L.P. (“Castlelake”), a global private investment firm with 15 years of tenure financing and managing aviation assets, together with Boeing (NYSE: BA) and its subsidiary Boeing Capital Corporation, today announced a partnership to provide delivery financing solutions to commercial aircraft customers for new commercial aircraft deliveries.
Through the partnership, Castlelake will seek to provide up to $5 billion of capital for new Boeing commercial aircraft deliveries via senior secured financing, mezzanine financing and high loan-to-value finance leases. Castlelake will have full discretion over which transactions to pursue and the terms of those transactions. The term of the partnership is through December 31, 2022, and can be extended for an additional two years.
“We are excited to work with Boeing to provide efficient, tailored financing solutions to their customers while also providing us with an excellent investment opportunity,” said Evan Carruthers, Chief Investment Officer and Co-Founder of Castlelake. “We believe aviation will continue to be vital to our global economy and we look forward to expanding our longstanding relationship with Boeing and its customers to navigate the current environment.”
“Boeing Capital’s strategy has always been and remains to ensure that a range of efficient financing solutions are available for customers who purchase our products,” said Tim Myers, President of Boeing Capital Corporation. “We have known and worked with the team members at Castlelake for 15 years and are pleased to be able to partner with them on this important program. As the entire industry navigates through the global pandemic, partnerships like these are important steps to supporting stability and positioning for the opportunities ahead.”
The financing partnership comes as Castlelake expands its aviation investment strategy further into aviation lending. Having invested throughout various aviation business cycles since 2005 and with an aviation team of more than 60 dedicated professionals across underwriting, finance, technical and other specialized disciplines, Castlelake believes it can provide attractive, tailored capital solutions to aviation industry participants, including airlines and other aircraft buyers. Castlelake’s aviation lending strategy is led by Armin Rothauser, who joined the firm in November with more than 20 years of experience in credit, lending and hard assets.