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North American Newsletter 25 January

North American Newsletter 25 January

Aircastle Announces Pricing of $750 Million Aggregate Principal Amount of Senior Notes

Aircastle announced the pricing of its 2.850% senior notes due 2028 at an issue price of 98.543%. Aircastle plans to use the net proceeds of the offering for general corporate purposes, which may include the repayment, refinancing or redemption of its existing indebtedness. The offering is expected to close on January 26, 2021, subject to the satisfaction of customary closing conditions.

Boeing Commits to Deliver Commercial Airplanes Ready to Fly on 100% Sustainable Fuels

Boeing is setting an ambitious target to advance the long-term sustainability of commercial aviation, committing that its commercial airplanes are capable and certified to fly on 100% sustainable aviation fuels by 2030. Boeing has previously conducted successful test flights replacing petroleum jet fuel with 100% sustainable fuels to address the urgent challenge of climate change. Boeing Commercial Airplanes President and CEO Stan Deal said “Our industry and customers are committed to addressing climate change, and sustainable aviation fuels are the safest and most measurable solution to reduce aviation carbon emissions in the coming decades. We’re committed to working with regulators, engine companies and other key stakeholders to ensure our airplanes and eventually our industry can fly entirely on sustainable jet fuels.”

Castlelake Prices $595 Million Castlelake Aircraft Structured Trust 2021-1

Castlelake recently priced its seventh structured ABS financing, Castlelake Aircraft Structured Trust 2021-1 (CLAS 2021-1), which is the first such transaction to be completed since the beginning of the global COVID-19 pandemic. CLAS 2021-1 totals $595 million of asset-backed debt and will be used to finance a diversified portfolio of 26 commercial passenger aircraft and one freighter on operating leases with 11 different lessees in 10 different countries.  Evan Carruthers, Managing Partner and Co-Founder of Castlelake said “We were very pleased by the robust investor interest in this transaction, which we believe speaks to our strong servicing track record and deep expertise in the aircraft leasing sector. Investors will benefit from the structural improvements we have made compared to prior vehicles, which are designed to enable this transaction to deliver sustainable, attractive returns in a range of market conditions. In addition, we believe that reopening the aircraft ABS market with this deal will have a positive impact on the broader aviation sector as well and are pleased to be able to continue to play a leading role in the space.”

United Announces 2020 Financial Results: 2021 Will Focus On Transition To Recovery; Expects To Exceed 2019 Adjusted EBITDA Margin By 2023

United Airlines announced fourth-quarter and full-year 2020 financial results. The company continues its efforts to lead the industry as it manages the most disruptive crisis in aviation history. Since the beginning of the COVID-19 crisis, United has raised over $26 billion in liquidity and made important progress in reducing core cash burn to ensure the company’s survival. Over the last three quarters, the company has identified $1.4 billion of annual cost savings and has a path to achieve at least $2.0 billion in structural reductions moving forward. Having stabilized its financial foundation, the company expects 2021 to be a transition year that’s focused on preparing for a recovery. United has resumed heavy maintenance and engine overhauls, investments that are essential to recovery when demand returns.

United Airlines: Doreen Burse Named Worldwide Sales SVP

United Airlines announced that the carrier has named Doreen Burse senior vice president of Worldwide Sales. Burse brings to the company more than 30 years of sales expertise from the hospitality industry. Burse, who will report to Executive Vice President and Chief Commercial Officer Andrew Nocella, will be responsible for leading United’s global sales strategy. She will work to enhance the airline’s existing sales programs while building new partnerships and driving overall revenue.

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