v3.25.2
Borrowings from Secured and Unsecured Debt Financings
 3 Months Ended
May 31, 2025
Debt Disclosure [Abstract]  
Borrowings from Secured and Unsecured Debt Financings Borrowings from Secured and Unsecured Debt Financings
The outstanding amounts of our secured and unsecured debt financings were as follows:
 
At May 31, 2025
At
February 28, 2025
Debt ObligationOutstanding
Borrowings		Number of AircraftInterest RateFinal Stated
Maturity		Outstanding
Borrowings
Secured Debt Financings:
Secured Term Financings(1)
$116,663 4
2.36% to 4.14%
11/30/31 to 06/27/32$509,104 
Less: Debt issuance costs and discounts(2,055)(6,495)
Total secured debt financings, net of debt issuance costs and discounts114,608 502,609 
Unsecured Debt Financings:
Senior Notes due 2025650,000 5.25%08/11/25650,000 
Senior Notes due 2026650,000 4.25%06/15/26650,000 
2.850% Senior Notes due 2028750,000 2.85%01/26/28750,000 
6.500% Senior Notes due 2028650,000 6.50%07/18/28650,000 
Senior Notes due 2029650,000 5.95%02/15/29650,000 
Senior Notes due 2030500,000 5.25%03/15/30500,000 
Senior Notes due 2031500,000 5.75%10/01/31500,000 
Unsecured Term Loan600,000 5.66%04/28/30— 
Revolving Credit Facilities20,000 
6.46%
01/31/27150,000 
   Less: Debt issuance costs and discounts(50,323)(47,219)
Total unsecured debt financings, net of debt issuance costs and discounts4,919,677 4,452,781 
Total secured and unsecured debt financings, net of debt issuance costs and discounts$5,034,285 $4,955,390 
        
(1)The borrowings under these financings at May 31, 2025, have a weighted average fixed rate of interest of 3.10%.
Secured Debt Financings
Secured Term Financings
On May 12, 2025, we repaid in full the $391.6 million outstanding principal amount of one of our term financings secured by 17 aircraft, and $5.5 million of accrued interest. The secured term financing had a final stated maturity date of November 21, 2029. We recognized a $3.0 million loss on the early extinguishment of debt related to the write-off of unamortized financing costs.
Unsecured Debt Financings
Unsecured Term Loan
On April 28, 2025, Aircastle Advisor, LLC (“AALLC”), a wholly-owned subsidiary of the Company, entered into a credit agreement with the lender parties thereto (the “Unsecured Term Loan Credit Agreement”) providing for a $600.0 million unsecured term loan (the “Unsecured Term Loan”). The Unsecured Term Loan bears interest at a floating rate under the Term Secured Overnight Funding Rate (“SOFR”) (as defined in the Unsecured Term Loan Credit Agreement) plus 1.40% per annum and matures on April 28, 2030. Prior to April 28, 2026, the total credit commitment under the
Unsecured Term Loan can be increased up to a maximum amount of $700.0 million. The Unsecured Term Loan Credit Agreement contains, among other customary provisions, a $1.1 billion minimum net worth covenant, a 2.0:1.0 minimum interest coverage ratio covenant, and a 1.25:1.0 minimum unencumbered asset ratio. The Company and Aircastle (Ireland) Designated Activity Company, a wholly-owned subsidiary of the Company, agreed to fully and unconditionally guarantee AALLC’s obligations under the Unsecured Term Loan Credit Agreement.
Revolving Credit Facilities
As of May 31, 2025, we had $20.0 million outstanding under our revolving credit facilities and had $2.1 billion available for borrowing.
As of May 31, 2025, we were in compliance with all applicable covenants in our financings.
AALLC Guarantees
In connection with AALLC entering into the Unsecured Term Loan Credit Agreement, AALLC agreed to fully and unconditionally guarantee (the “AALLC Guarantees”) the Company’s obligations under its: (i) revolving credit facilities; (ii) 5.250% Senior Notes due 2025; (iii) 4.250% Senior Notes due 2026; (iv) 2.850% Senior Notes due 2028; (v) 6.500% Senior Notes due 2028; (vi) 5.950% Senior Notes due 2029; (vii) 5.25% Senior Notes due 2030, and (viii) 5.75% Senior Notes due 2031 (collectively, the “Existing Unsecured Debt”). As a result of the AALLC Guarantees, the Unsecured Term Loan ranks pari passu in right of payment with the Existing Unsecured Debt.