Virgn Atlantic Secures Financing from Castlelake for Aircraft Investment

Deal News | Jan 13, 2025 | Castlelake LP

Castlelake L.P., a global investment manager renowned for its asset-based investing, especially in aviation, has announced a significant financing arrangement with Virgin Atlantic Airways. This loan is secured against approximately $400 million in assets, including an Airbus A350-1000 aircraft and nine Rolls Royce Trent engines. The move underscores Castlelake's commitment to providing capital solutions to the aviation industry amidst its ongoing recovery and demand surge. With over 20 years of experience in this sector, Castlelake has a vast portfolio, having invested over $21 billion in aviation assets since its inception in 2005. This latest deal further exemplifies Castlelake's strategy to enhance its portfolio and strengthen relationships within the airline industry.

Sectors

  • Aviation Finance
  • Alternative Investment

Geography

  • Global – Castlelake is a global investment manager with operations in North America, Europe, and Asia, reflecting its global approach to investments.
  • United Kingdom – Virgin Atlantic Airways is a UK-based airline, relevant to the geography of this transaction.

Industry

  • Aviation Finance – The article focuses on financing solutions within the aviation sector, particularly the investment in aircraft and engines, indicating the relevance of the aviation finance industry.
  • Alternative Investment – Castlelake operates in the alternative investment space, specializing in asset-based investments which encompass the financing deal with Virgin Atlantic.

Financials

  • $400 million – The estimated value of assets, including an Airbus A350-1000 aircraft and nine Rolls Royce Trent engines, securing the loan provided by Castlelake to Virgin Atlantic.

Participants

NameRoleTypeDescription
Castlelake L.P.Lending CompanyCompanyA global alternative investment manager specializing in asset-based investments, particularly within the aviation sector.
Virgin Atlantic AirwaysBorrowing CompanyCompanyA major British airline benefiting from Castlelake's financing for its aircraft and engine assets.
Chris BuckleySpokespersonPersonPartner and Aviation Chief Commercial Officer at Castlelake, providing insights into the partnership with Virgin Atlantic.