Macquarie AirFinance to sell $500 million 5.5-year notes on Monday; initial talk mid-8% area

By Paul A. Harris

Portland, Ore., Sept. 11 – Macquarie AirFinance Holdings Ltd. plans to price a $500 million offering of 5.5-year senior notes (BB+/BB) in a Monday drive-by trailing a conference call with investors, according to market sources.

Initial talk has the deal coming to yield in the mid-8% area, a trader said.

The Rule 144A and Regulation S notes become callable after two years at par plus 50% of the coupon. They feature a 40% equity clawback during the non-call period and have a 101% poison put.

Citigroup Global Markets Inc. is the left active bookrunner. J.P. Morgan Securities LLC and MUFG Securities Americas Inc. are the joint active bookrunners.

BMO Capital Markets Corp., BNP Paribas Securities Corp., DBS Bank, HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and Natixis Securities Americas LLC are the joint passive bookrunners.

The San Francisco-based aviation consultant plans to use the proceeds to repay $400 million of its $1.3 billion senior secured term loan and $100 million of its unsecured revolver.

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