Macquarie AirFinance to sell benchmark split-rated notes on Tuesday

By Paul A. Harris

Portland, Ore., March 19 – Macquarie AirFinance Holdings Ltd. (expected ratings Baa3/BB+) plans to price a benchmark two-part offering of dollar-denominated senior notes on Tuesday, according to market sources.

The Rule 144A and Regulation S for life deal is coming in an investment-grade execution but has generated interest among some high-yield investors, a trader said.

The offering features notes maturing on March 26, 2029, with initial spread talk of Treasuries plus 250 basis points, and notes maturing on March 26, 2031, with initial spread talk of Treasuries plus 262.5 bps.

The five-year notes feature a make-whole call until one month prior to maturity, whereupon they become callable at par. The seven-year notes feature a make-whole call until two months prior to maturity, whereupon they become callable at par. The notes in both tranches are otherwise non-callable.

The notes in both tranches feature 101 change-of-control provisions.

Active bookrunner JPMorgan will bill and deliver. BNP Paribas, Citigroup and Mizuho are also active bookrunners.

The Dublin-based aircraft lessor plans to use the majority of the proceeds to prepay the outstanding principal amount under its term loan, with the remaining proceeds to partially prepay the outstanding principal amount under its acquisition finance facility.

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