Avolon announced an agreement to acquire Castlelake Aviation (CA)’s total $5 billion portfolio of 118 aircraft. This includes 105 aircraft on lease, commitments for 13 new-technology aircraft, 2 engines on lease, and 9 loans.

CA was established in 2021 by the investment firm Castlelake. Over the past three years, its portfolio has grown to comprise a diverse mix of narrowbody, widebody, and regional jets. The sale aligns with Castlelake’s goal of delivering risk-adjusted returns to its investors while providing Avolon with in-demand aviation assets.

“This transaction accelerates our growth plans adding a portfolio of assets that will further strengthen our cashflow and earnings profile,” Andy Cronin, Avolon CEO, commented. “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.”

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