Castlelake and Boeing Announce Aircraft Financing Collaboration

Rhea-AI Summary

Castlelake, L.P. and Boeing have announced a partnership to offer financing solutions for new commercial aircraft deliveries. The collaboration aims to provide up to $5 billion in financing through various methods, including senior secured financing and mezzanine financing, with Castlelake having full discretion to choose transactions. This partnership is effective until December 31, 2022, with a possible two-year extension. The initiative reflects a strategic move by Castlelake to expand its aviation lending capabilities amidst challenges in the aviation industry.

Positive

• Partnership to provide up to $5 billion in aircraft delivery financing.
• Castlelake has discretion over transaction choices, potentially enhancing profitability.
• Boeing Capital's strategy aligns with stability and growth in the aviation sector.

Negative

• None.

MINNEAPOLIS, Dec. 1, 2020 /PRNewswire/ -- 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.

About Castlelake
Castlelake, L.P. is a global private investment firm focused on investments in alternative assets, sub-performing notes and special situations, and is an experienced leader in aircraft ownership and servicing. With offices in Minneapolis, Dallas, New York, London, Dublin, Luxembourg and Singapore, the Castlelake team comprises more than 200 experienced professionals. As of September 30, 2020, Castlelake manages approximately $18.4 billion in assets, on behalf of its investors. For more information, please visit www.castlelake.com.

About Boeing
Boeing is the world's largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing Capital Corporation is a global provider of financing solutions. A wholly-owned subsidiary of The Boeing Company, Boeing Capital offers asset-backed lending and leasing, concentrating on assets that are critical to the core operations of Boeing customers. Boeing Capital's primary mission is to support the other Boeing business units by ensuring customers have the financing they need to buy and take delivery of their Boeing products.

Contact
Castlelake Media Relations
Molly Blemker
+1 612 851 3083
media.relations@castlelake.com                   

Prosek Partners
David Wells / Josh Clarkson / Mariel Seidman-Gati
dwells@prosek.com / jclarkson@prosek.com / mseidman-gati@prosek.com
+1 212 279 3115

Boeing
Peter Pedraza
+1 312 618 8998
Peter.p.pedraza@boeing.com 

View original content:http://www.prnewswire.com/news-releases/castlelake-and-boeing-announce-aircraft-financing-collaboration-301182632.html

SOURCE Castlelake

FAQ

What is the partnership between Castlelake and Boeing about?

The partnership focuses on providing financial solutions for new commercial aircraft deliveries, offering up to $5 billion in financing.

How much capital is Castlelake planning to invest in Boeing aircraft deliveries?

Castlelake aims to provide up to $5 billion for financing Boeing's new commercial aircraft deliveries.

When does the Castlelake and Boeing partnership expire?

The partnership is effective until December 31, 2022, with the option for a two-year extension.

What types of financing will Castlelake provide for Boeing aircraft?

Castlelake will offer senior secured financing, mezzanine financing, and high loan-to-value finance leases.

What is Castlelake's focus in aviation investment?

Castlelake is expanding its aviation investment strategy into aviation lending, targeting airlines and aircraft buyers.