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Freshfields advises KGAL on leasing of 3 new Airbus A220 aircraft to Air Baltic

Global law firm Freshfields Bruckhaus Deringer (‘Freshfields’) has advised KGAL Investment Management GmbH & Co. KG (‘KGAL’) on the sale and lease back arrangements for three new Airbus A220-300 aircraft with Air Baltic.

The aircraft are beneficially owned by KGAL APF 5 GmbH & Co. geschlossene Investment KG, a fund for institutional investors established and managed by KGAL. The lease agreements have been arranged and are managed by GOAL German Operating Aircraft Leasing GmbH & Co. KG (‘GOAL’).

The transaction marks the first cooperation between GOAL and Air Baltic, and with the Airbus A220 GOAL adds a new aircraft model to its asset portfolio.

The aircraft are debt financed by non-recourse loans which are cross-collateralised. The loans were arranged and fronted by Natixis and supported by a Balthazar insurance policy. This is the first Balthazar-backed transaction for KGAL/GOAL. The transactions closed on 30 November 2022 (two aircraft) and 30 December 2022 (one aircraft) upon delivery of the relevant aircraft at Montreal-Mirabel airport.

Freshfields advised KGAL on all aspects of the sale and lease back and financing transaction throughout its structuring, documentation, negotiation and implementation.

The KGAL/GOAL team was headed by Christian Schloemann, Swen Horvath and Frank Rustemeier.

The Freshfields team comprised partners Johannes Vogel (Finance, Frankfurt), Flora McLean (Finance, London), Principal Associate Mathias Lehner, Associate Willibald Salomon (both Finance, Vienna) and Tony Areri (Finance, Frankfurt am Main).