Dublin Ireland headquartered aviation leasing specialists Avolon has agreed to acquire Castlelake Aviation Limited, including its aircraft portfolio along with orders and options.
Castlelake’s assets consist of a $5bn aircraft portfolio with 105 aircraft already on lease with airlines, 70% of which are new technology aircraft, as well as commitments for 13 new technology aircraft. It also has two engines on lease.
The acquisition will help Avolon on its rapid growth journey and bolster its aircraft fleet with new aircraft available to put out to lease.
Andy Cronin, Avolon CEO, commented: “This transaction accelerates our growth plans adding a portfolio of assets that will further strengthen our cashflow and earnings profile. Our balance sheet strength, high levels of liquidity, and established capital markets access have enabled us to acquire these assets. They are complementary to our existing portfolio and will increase our fleet at attractive yields, supporting our positive ratings trajectory.”
Joe McConnell, Castlelake Partner and Deputy Co-Chief Investment Officer added: “We’re pleased to collaborate with Avolon on this notable transaction, delivering what we believe is a win-win for all parties: returning capital to Castlelake’s and CA Ltd.’s investor stakeholders, position lessees for ongoing high-quality asset management services, and provide Avolon with a fleet of high-quality aircraft assets.”
The acquisition will be funded by transferring up to $3.3bn of debt from Castlelake with the balance funded from Avolon’s own liquidity.