Lessor of passenger and freighter aircraft, Aircastle, has signed a $900m agreement with Latin American carrier LATAM Airlines Group to enter into purchase and leaseback transactions for eight Boeing 777-300ER aircraft.
The deal for the first group of four aircraft manufactured in 2012 is expected to close in the second quarter of 2014, with an average lease term of 60 months.
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The second aircraft group, manufactured in 2008, is expected to be purchased by Aircastle following the repayment of the existing financings, and will be leased back to the carrier with lease terms expiring in 2017 and 2018.
Aircastle CEO Ron Wainshal said: "We are assisting LATAM by providing a complete solution for its Boeing 777-300ER fleet transition programme, while acquiring very attractive, well-priced assets that we will be able to remarket before newer generation aircraft are available.
"This transaction plays to Aircastle’s balance sheet strengths and its experience as a skilled aircraft manager."
The completion of these transactions is subject to conditions precedent customary for transactions of this type.
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By GlobalDataAircastle acquires, leases and sells commercial jet aircraft to airlines across the world.
As of 31 December 2013, the company’s aircraft portfolio included 162 aircraft on lease with 64 customers in 37 countries.
