Castlelake, L.P., a global alternative investment manager specializing in asset-backed private credit with 17 years of tenure investing in, financing and managing aviation assets ("Castlelake"), today announced the full repayment of Castlelake Aircraft Securitization Trust 2016-1 ("CLAS 2016-1"), an aircraft-backed securitization ("ABS") originally issued by Castlelake in 2016.
CLAS 2016-1 was comprised of $916 million of asset-backed debt and an asset portfolio of 52 aircraft and one engine. Castlelake completed the repayment nearly two years ahead of forecast using cash flow from leases and proceeds from the sale of assets.
"Castlelake is pleased to complete the repayment of Castlelake Aircraft Securitization Trust 2016-1, the second aircraft ABS we have repaid this year, through a relentless focus on hands-on asset servicing, management and remarketing," said Joe McConnell, Partner, Deputy Co-chief Investment Officer at Castlelake. "We believe this achievement is further testament to the effectiveness of Castlelake's proactive approach to investment management, especially given the backdrop of challenges faced by the aviation sector in recent years."
This is the sixth aircraft ABS that Castlelake has fully repaid or refinanced. In February 2023, Castlelake repaid Castlelake Aircraft Securitization Trust 2015-1R more than one year ahead of schedule. Previously, Castlelake also repaid or refinanced Castlelake Aircraft Securitization Trust 2014-1; Castlelake Aircraft Securitization Trust 2014-1R; Castlelake Aircraft Securitization Trust 2015-1; and Castlelake Aircraft Structured Trust 2017-1.
Castlelake has utilized the ABS market to finance pools of aircraft assets since 2014 when it issued the first aircraft ABS in the market following the global financial crisis. In 2021, Castlelake once again reopened the aircraft ABS market with the issuance of Castlelake Aircraft Structured Trust 2021-1 after the market had effectively closed during the COVID-19 pandemic. Castlelake has raised over $6 billion of other secured aircraft financings via 100+ lender relationships.
As a strategic partner and active capital provider to aviation asset owners and lessees since its inception, Castlelake has invested over $17 billion in aviation opportunities, acquired more than 650 aircraft and developed relationships with approximately 200 airlines.