Castlelake, L.P. (“Castlelake”), a global alternative investment firm and experienced leader in aircraft investing, leasing and servicing, today announced the pricing of a private offering by Castlelake Aviation Finance Designated Activity Company (“CA FINCO”), a subsidiary of Castlelake Aviation Limited (“CA”), the corporate aircraft lessor created by Castlelake in September 2021.
An aggregate of $420.0 million in principal amount of 5.00% senior notes due 2027 (the “Notes”) is expected to be issued on October 22, 2021, subject to customary closing conditions. The Notes will be issued at a price to investors of 100% of their principal amount. Concurrently with the issuance of the Notes, CA expects certain of its subsidiaries to enter into a credit agreement providing for a $1.18 billion term loan facility (“New Term Loan”), also subject to customary closing conditions. In total, the Notes and New Term Loan will provide gross proceeds of $1.6 billion. CA FINCO also expects to enter into a $750 million secured revolving credit facility that will remain undrawn at closing.
CA intends to use the proceeds of the Notes and the New Term Loan to finance the acquisition of 71 current and next-generation aircraft that are in high demand across the global commercial fleet. Additional proceeds will be used to fund future strategic growth initiatives for CA, including additional aircraft for which we are in active negotiations.
This press release is neither an offer to sell nor the solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. The Notes are being offered in the United States only to persons reasonably believed to be qualified institutional buyers in an offering exempt from registration in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements of the Securities Act or any applicable state securities laws.
Forward Looking Statements
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to, statements relating to future operations. These statements are based on management's current expectations and beliefs and are subject to a number of factors that could lead to actual results materially different from those described in the forward-looking statements. Castlelake can give no assurance that their expectations will be attained. There are important factors that could cause actual results, level of activity, performance or achievements to differ from the results, level of activity, performance or achievements expressed or implied in the forward looking statements. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this press release may not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Castlelake expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Castlelake’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based. Further to this, past performance is not an indication or guarantee of future results and as such, there can be no guarantee that historical trends will continue.