Lessor Avalon will obtain Castlelake Aviation, adding 118 aircraft to its portfolio.
Castlelake Aviation’s assets were worth $5 billion as of 31 March, according to the two companies.
Avolon is buying the portfolio from investment manager Castlelake, which oversees $22 billion in assets.
The portfolio includes 105 aircraft that are on lease, two engines on lease, commitments for 13 aircraft, as well as nine loans.
Avolon does not break down specific aircraft types, but indicates that 68% of the aircraft are narrowbodies and 70% are “new technology” aircraft. The average aircraft age is 4.7 years.
“This transaction accelerates our growth plans adding a portfolio of assets that will further strengthen our cashflow and earnings profile,” says Avolon chief executive Andy Cronin.
“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.”
The portfolio has $3.3 billion of transferable debt, with the balance of the deal to be funded from Avolon’s existing sources of funds.
The deal is expected to close in the first quarter of 2025.