Published on 8/10/2020 in the Prospect News Investment Grade Daily.
New Issue: Air Lease prices $700 million of 2.875% notes due 2026 at 285 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 10 – Air Lease Corp. priced $700 million of 2.875% medium-term notes due Jan. 15, 2026 (BBB/BBB/Kroll: A-) on Monday at 98.972 to yield 3.083%, or a spread of 285 basis points over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes were talked to price in the 300 bps to 312.5 bps spread area.
Bookrunners were Mizuho Securities USA LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Loop Capital Markets LLC, MUFG, SG Americas Securities, LLC, Truist Securities, Inc., BNP Paribas Securities Corp., Fifth Third Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, NatWest Markets Securities Inc., Regions Securities LLC, Santander Investment Securities Inc., Citizens Capital Markets, Inc., Commonwealth Bank of Australia, ICBC Standard Bank Plc, KeyBanc Capital Markets Inc., Arab Banking Corporation B.S.C., CIBC World Markets Corp. and Mischler Financial Group, Inc.
The Los Angeles aircraft leasing company plans to use the proceeds for general corporate purposes, including debt repayment.
| Issuer: | Air Lease Corp.
|
| Amount: | $700 million
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| Description: | Series A medium-term notes
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| Maturity: | Jan. 15, 2026
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| Bookrunners: | Mizuho Securities USA LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Loop Capital Markets LLC, MUFG, SG Americas Securities, LLC, Truist Securities, Inc., BNP Paribas Securities Corp., Fifth Third Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, NatWest Markets Securities Inc., Regions Securities LLC, Santander Investment Securities Inc., Citizens Capital Markets, Inc., Commonwealth Bank of Australia, ICBC Standard Bank plc, KeyBanc Capital Markets Inc., Arab Banking Corporation B.S.C., CIBC World Markets Corp. and Mischler Financial Group, Inc.
|
| Co-managers: | Morgan Stanley & Co. LLC and Keefe, Bruyette & Woods, Inc.
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| Coupon: | 2.875%
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| Price: | 98.972
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| Yield: | 3.083%
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| Spread: | Treasuries plus 285 bps
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| Call features: | Make-whole call at price equal to greater of par or Treasuries plus 45 bps before Dec. 15, 2025; thereafter at par
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| Change-of-control put: | 101% plus accrued and unpaid interest
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| Trade date: | Aug. 10
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| Settlement date: | Aug. 17
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| Ratings: | S&P: BBB
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| Fitch: BBB
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| Kroll: A-
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 300 bps-312.5 bps area
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