Castlelake finalizes $1.18 billion term B at Libor plus 275 bps

By Sara Rosenberg

New York, Oct. 8 – Castlelake Aviation Ltd. firmed pricing on its $1.18 billion five-year senior secured first-lien term loan B (Ba3/BB/BB+) at Libor plus 275 basis points, the low end of the Libor plus 275 bps to 300 bps talk, according to a market source.

As before, the term loan has a 0.5% Libor floor, an original issue discount of 99, 101 soft call protection for six months and amortization of 1% per annum.

Of the total term loan B amount, $200 million is a delayed-draw tranche with a ticking fee of half the margin from days 31 to 60.

Financial covenants include a loan to value ratio of no greater than 70%, a maximum average age of aircraft and collateral concentration ratios.

Morgan Stanley Senior Funding Inc., Citigroup Global Markets Inc., MUFG, Goldman Sachs Bank USA, RBC Capital Markets, Barclays and Natixis are the joint lead arrangers and bookrunners on the deal. Fifth Third is a co-arranger. Citigroup is the administrative agent.

Proceeds will be used with $420 million of unsecured notes to purchase the Day 1 Portfolio, refinance existing debt, capitalize the new corporate Castlelake entity and pay related fees and expenses.

Closing is expected on Oct. 22.

Castlelake Aviation is a newly formed Ireland-based aircraft leasing company wholly owned by affiliates of Castlelake LP.

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