Published on 9/10/2018 in the Prospect News Investment Grade Daily.
New Issue: Air Lease prices $1.2 billion of senior notes in two tranches on top of guidance
By Cristal Cody
Tupelo, Miss., Sept. 10 – Air Lease Corp. priced $1.2 billion of senior notes (BBB/BBB) in two tranches on Monday in line with guidance, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company sold $700 million of 3.5% notes due Jan. 15, 2022 at 99.29 to yield 3.73%, or a spread of 95 basis points over Treasuries.
Air Lease priced $500 million of 4.625% 10-year notes at 98.718 to yield 4.787%. The notes priced at a 185 bps over Treasuries spread.
Bookrunners were J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, Wells Fargo Securities LLC, ABN Amro Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commonwealth Bank of Australia, Fifth Third Securities Inc., Goldman Sachs & Co. LLC, ICBC Standard Bank plc, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Loop Capital Markets LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Regions Securities LLC, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC.
Proceeds will be used for general corporate purposes, including purchasing commercial aircraft and debt repayment.
Air Lease is a Los Angeles-based aircraft leasing company.
| Issuer: | Air Lease Corp.
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, Wells Fargo Securities LLC, ABN Amro Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Commonwealth Bank of Australia, Fifth Third Securities Inc., Goldman Sachs & Co. LLC, ICBC Standard Bank plc, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Loop Capital Markets LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Regions Securities LLC, SunTrust Robinson Humphrey Inc. and TD Securities (USA) LLC
|
| Co-managers: | Arab Banking Corp. BSC and Keefe, Bruyette & Woods, Inc.
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 17
|
| Ratings: | S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Notes due January 2022
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| Amount: | $700 million
|
| Maturity: | Jan. 15, 2022
|
| Coupon: | 3.5%
|
| Price: | 99.29
|
| Yield: | 3.73%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Jan. 15, 2022
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 95 bps; initially talked at Treasuries plus 112.5 bps area
|
|
|
| 10-year notes
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| Amount: | $500 million
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| Maturity: | Oct. 1, 2028
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| Coupon: | 4.625%
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| Price: | 98.718
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| Yield: | 4.787%
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| Spread: | Treasuries plus 185 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps before July 1, 2028; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 185 bps; initially talked at Treasuries plus 190 bps area
|
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