Aircastle Announces New $375 Million Unsecured Term Loan

What's the deal? Aircastle Limited, a commercial jet aircraft leasing company based in Stamford, Connecticut, has closed a new $375 million unsecured term loan. The five-year facility was arranged by Fifth Third Bank, Industrial and Commercial Bank of China Limited (NY Branch), The Huntington National Bank, and PNC Capital Markets LLC. It includes an expansion feature that can be activated within six months of closing.

Why now? Aircastle is looking to grow its portfolio of in-demand aircraft amid what it describes as "volatile macro conditions." The company currently owns and manages 282 aircraft leased to 76 customers across 45 countries.

Roy Chandran, Aircastle's chief financial officer, said the deal reflects "strong support we receive from the broader banking community on terms that are very attractive." He added that "unparalleled access to capital markets is a competitive edge, granting us the ability to execute efficiently as we grow our portfolio of sought-after aircraft."

What could go wrong? The term loan is unsecured, meaning it is not backed by specific collateral — a structure that carries more risk for lenders and typically demands strong credit standing from the borrower. Volatile macroeconomic conditions, which Aircastle itself acknowledged, could pressure airline customers and affect lease revenues. Trade tensions or an economic downturn could weaken demand for aircraft leasing globally.

The signal: Aircraft lessors continue to attract bank financing even in uncertain markets, reflecting sustained demand for commercial jets worldwide. Airlines increasingly prefer leasing over purchasing aircraft outright, keeping lessors like Aircastle well-positioned. The deal's attractive terms and multi-bank syndication suggest lenders remain confident in aviation's long-term fundamentals despite near-term turbulence.