By Lisa Kerner
Charlotte, N.C., April 12 - Aviation Capital Group Corp. announced it issued $255 million in unsecured medium-term notes on Thursday in tranches of five-, seven- and 10-year bullet maturities.
The company said the majority of demand was for the longer tranche and that the issue, originally offered at $100 million, was oversubscribed three times.
BNP Paribas and Citi managed the private placement.
Since Jan. 1, 2009, Aviation Capital has sourced approximately $2 billion of capital.
In a company news release, Aviation Capital chief executive officer R. Stephen Hannahs said a key element of the company's financial philosophy is "the strategic decision to shift from secured financings, such as aircraft-backed securitizations and secured warehouse bank debt, to corporate unsecured borrowings."
"Shifting to unsecured borrowings allows us to improve financial flexibility and have substantially greater flexibility in deploying our aircraft, which better serves our customers," Hannahs said.
The company said it will make increasing use of unsecured borrowings in the future.
More than 85% of Aviation Capital's debt obligations mature in greater than five years.
Aviation Capital, based in Newport Beach, Calif., owns and manages a diversified fleet of commercial jet aircraft leased to international airlines.
| Issuer: | Aviation Capital Group Corp.
|
| Issue: | Unsecured medium-term notes
|
| Amount: | $255 million
|
| Maturity: | Five-, seven- and 10-year bullet maturities
|
| Managers: | BNP Paribas and Citi
|
| Settlement date: | April 8
|
| Distribution: | Private placement
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