Aircastle Announces a Joint Venture with Ontario Teachers' Pension Plan and
the Closing of the Joint Venture's First Investment
STAMFORD, Conn., Dec. 19, 2013
STAMFORD, Conn., Dec. 19, 2013 /PRNewswire/ --Aircastle Limited (the
"Company" or "Aircastle") (NYSE: AYR) announced today that it has formed a
joint venture to invest in leased aircraft (the "Joint Venture") with an
affiliate of Ontario Teachers' Pension Plan ("Teachers'"), the largest
single-profession pension plan in Canada. The Joint Venture's first
investment is two Airbus A330 family aircraft manufactured in 2013 and leased
to Indonesian flag carrier, PT Garuda Indonesia (Persero) Tbk. Both aircraft
were purchased from Aircastle, which had acquired them earlier this year upon
delivery from Airbus. Over time, the Joint Venture hopes to acquire between
$500 million to $1 billion of aircraft investments. Aircastle will source and
service these investments, complementing the growth in its own portfolio.
Ron Wainshal, Aircastle's Chief Executive Officer, commented, "We are pleased
to expand our relationship with Teachers' through this aircraft leasing
venture. We believe that by working together we will be able both to secure
larger transaction opportunities and to manage portfolio exposures while
continuing to maintain strong servicing relationships with our airline
customers. This joint venture, along with the recent strategic investment in
our Company by Marubeni Corporation, our largest shareholder, also strengthens
Aircastle's capital structure and our competitive position."
Aircastle will provide marketing, asset management and administrative services
to the Joint Venture and will be paid market-based fees for those services.
The Company is not obliged to source investments for the Joint Venture or to
offer any minimum number of investments to the Joint Venture, and neither
partner is obliged to invest in specific transactions.
Teachers' investment was led by its Long-Term Equities group, which focuses on
direct investments with steady cash flow, growth potential over a long-term
horizon and a low to moderate level of risk. Teachers' currently owns a
minority stake in Aircastle consisting of 6.9 million shares.
"Teachers' looks forward to working with Aircastle to grow the joint venture,"
said Lee Sienna, Vice-President of Teachers' Long-Term Equities. "Having the
ability to invest in aircraft leasing alongside a skilled partner is very
attractive and makes this a unique investment vehicle for us."
About Aircastle Limited
Aircastle Limited acquires, leases and sells commercial jet aircraft to
airlines throughout the world. As of September 30, 2013, Aircastle's aircraft
portfolio consisted of 161 aircraft on lease with 68 customers located in 37
With $129.5 billion in net assets as of December 31, 2012, the Ontario
Teachers' Pension Plan is the largest single-profession pension plan in
Canada. An independent organization, it invests the pension fund's assets and
administers the pensions of 303,000 active and retired teachers in Ontario.
For more information, including our 2012 and previous annual reports, visit
www.otpp.com. Follow us on Twitter @OtppInfo
Certain items in this press release and other information we provide from time
to time, may constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 including, but not
necessarily limited to, statements relating to our proposed public offering of
notes and our ability to acquire, sell, lease or finance aircraft, raise
capital, pay dividends, and increase revenues, earnings, EBITDA, Adjusted
EBITDA and Adjusted Net Income and the global aviation industry and aircraft
leasing sector. Words such as "anticipates," "expects," "intends," "plans,"
"projects," "believes," "may," "will," "would," "could," "should," "seeks,"
"estimates" and variations on these words and similar expressions are intended
to identify such forward-looking statements. These statements are based on
management's current expectations and beliefs and are subject to a number of
factors that could lead to actual results materially different from those
described in the forward-looking statements; Aircastle can give no assurance
that its expectations will be attained. Accordingly, you should not place
undue reliance on any forward-looking statements contained in this press
release. Factors that could have a material adverse effect on our operations
and future prospects or that could cause actual results to differ materially
from Aircastle's expectations include, but are not limited to, capital markets
disruption or volatility which could adversely affect our continued ability to
obtain additional capital to finance new investments or our working capital
needs; government fiscal or tax policies, general economic and business
conditions or other factors affecting demand for aircraft or aircraft values
and lease rates; our continued ability to obtain favorable tax treatment in
Bermuda, Ireland and other jurisdictions; our ability to pay dividends; high
or volatile fuel prices, lack of access to capital, reduced load factors
and/or reduced yields, operational disruptions caused by political unrest in
North Africa, the Middle East or elsewhere, and other factors affecting the
creditworthiness of our airline customers and their ability to continue to
perform their obligations under our leases; termination payments on our
interest rate hedges; and other risks detailed from time to time in
Aircastle's filings with the Securities and Exchange Commission ("SEC"),
including as previously disclosed in Aircastle's 2012 Annual Report on Form
10-K, and in our other filings with the SEC, press releases and other
communications. In addition, new risks and uncertainties emerge from time to
time, and it is not possible for Aircastle to predict or assess the impact of
every factor that may cause its actual results to differ from those contained
in any forward-looking statements. Such forward-looking statements speak only
as of the date of this press release. Aircastle expressly disclaims any
obligation to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in its expectations with
regard thereto or change in events, conditions or circumstances on which any
statement is based.
For more information regarding Aircastle and to be added to our email
distribution list, please visit http://www.aircastle.com.
SVP Investor Relations
The IGB Group
SOURCE Aircastle Limited
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