Castlelake Launches 614 Million Aircraft Lease ABS in 2025

Castlelake’s $614.8 Million CLAS 2025-2 Aircraft Lease ABS: A Comprehensive Analysis of Aviation Securitization Trends

Castlelake, a prominent global alternative investment manager specializing in asset-backed private credit, has launched its second Commercial-Aircraft lease asset-backed securitization (ABS) of 2025, marking a continued resurgence in aviation structured finance. The CLAS 2025-2 transaction, valued at $614.8 million, follows the successful pricing of CLAS 2025-1 earlier in the year and represents Castlelake’s 12th public aviation ABS since entering the market.

This report provides an in-depth examination of the transaction’s structure, including its three-tranche debt offering secured by a portfolio of 26 aircraft leased to 21 operators across 16 jurisdictions. Against a backdrop of recovering air travel demand and evolving interest rate conditions, Castlelake’s return to the ABS market underscores the instrument’s renewed viability for financing mid-life aircraft portfolios.

FAQ

What is CLAS 2025-2?
CLAS 2025-2 is Castlelake’s second aircraft lease asset-backed securitization (ABS) of 2025, valued at $614.8 million and backed by a portfolio of 26 aircraft.

How many aircraft are included in the CLAS 2025-2 portfolio?
The portfolio includes 26 aircraft: 23 narrowbody passenger aircraft and 3 widebody freighters.

What are the credit ratings for the CLAS 2025-2 tranches?
Preliminary ratings assigned include ‘A’ for the senior Series A notes, ‘BBB’ for Series B, and ‘BB’ for Series C.

What is the average age and lease term of the aircraft in the portfolio?
The weighted average age is 12.0 years, and the weighted average remaining lease term is 4.8 years.

Who are the lessees?
The aircraft are leased to 21 lessees across 16 jurisdictions, providing geographic diversification.

Sources:
IshkaGlobal,
KBRA,
Fitch Ratings,
Airfinance Journal,
Aircraft Monitor,
Airways Magazine