Aircastle Announces $900 Million Agreement for Purchase and Leaseback of Boeing 777-300ERs with LATAM Airlines Group

STAMFORD, Conn., Feb. 25, 2014 /PRNewswire/ -- Aircastle Limited ("Aircastle") (AYR) announced that it reached an agreement with LATAM Airlines Group S.A. ("LATAM") to enter into purchase and leaseback transactions involving eight Boeing 777-300ER aircraft.

The first group of four aircraft, which were manufactured in 2012, is expected to close early in the second quarter of 2014 with an average lease term of 60 months. The second group of aircraft, which were manufactured in 2008, is expected to be purchased by Aircastle once the existing financings are repaid and will be leased back to LATAM with lease terms expiring in 2017 and 2018.

Ron Wainshal, Aircastle's CEO, commented: "LATAM is one of the world's premier airline groups and we are very happy to have concluded this important transaction. In doing so, we are assisting LATAM by providing a complete solution for its Boeing 777-300ER fleet transition program 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 closing of these transactions is subject to conditions precedent customary for transactions of this type.