International Lease gets tenders for $2.69 billion of notes so far

By Angela McDaniels

Tacoma, Wash., June 3 - International Lease Finance Corp. had received tenders for $2,688,766,000 of medium-term notes as of 5 p.m. ET on June 2, which was the early tender date in a series of tender offers that began on May 19.

According to a company news release, holders had tendered:

• $293,017,000, or 58.6%, of its $500 million of 4.75% series Q notes due Jan. 13, 2012;

• $386.51 million, or 51.53%, of its $750 million of 5.4% series R notes due Feb. 15, 2012;

• $265.02 million, or 44.17%, of its $600 million of 5.35% series R notes due March 1, 2012;

• $402.56 million, or 47.36%, of its $850 million of 5.3% series R notes due May 1, 2012;

• $100,658,000, or 33.55%, of its $300 million of 5.55% series R notes due Sept. 5, 2012;

• $102,093,000, or 34.03%, of its $300 million of 5% series Q notes due Sept. 15, 2012;

• $72.07 million, or 24.02%, of its $300 million of 5.25% series Q notes due Jan. 10, 2013

• $305.1 million, or 30.51%, of its $1 billion of 6.375% series R notes due March 25, 2013;

• $152.36 million, or 25.39%, of its $600 million of 5.875% series O notes due May 1, 2013;

• $414,958,000, or 48.82%, of its $850 million of 5.625% series R notes due Sept. 20, 2013; and

• $194.42 million, or 25.92%, of its $750 million of 6.625% series R notes due Nov. 15, 2013.

The company is offering to purchase any and all of its 4.75% series Q notes due 2012 and any and all of its $750 million of 5.4% series R notes due 2012.

International Lease is also tendering for a maximum amount of the nine other series of notes. The total purchase price including accrued interest for these notes will be no more than $1.75 billion minus the total purchase price including accrued interest paid for the notes in the any and all offers. In addition, the company will purchase no more than $500 million principal amount of notes due in 2013.

In the any and all offers, the company will pay a total price of $1,025.00 for each $1,000 principal amount of 4.75% notes and $1,030.00 for each $1,000 of 5.4% notes tendered by the early deadline.

In the separate maximum tender offers, for each $1,000 principal amount of notes tendered by the early deadline, the company will pay:

• $1,030.00 for the 5.35% series R notes;

• $1,036.25 for the 5.3% series R notes;

• $1,042.50 for the 5.55% series R notes;

• $1,035.00 for the 5% series Q notes;

• $1,037.50 for the 5.25% series Q notes;

• $1,060.00 for the 6.375% series R notes;

• $1,048.75 for the 5.875% series O notes;

• $1,041.25 for the 5.625% series R notes; and

• $1,062.50 for the 6.625% series R notes.

The notes in the maximum tender offers are listed in order of priority acceptance level.

The total amounts include a $30.00 premium for each note tendered by the early tender date. Holders who tender after the early date will be ineligible to receive that premium.

The company also will pay accrued interest to the payment date, which was June 3 for the notes tendered in the any and all offers by the early tender date. The total amount paid for these notes including interest was about $710.1 million. If no additional notes are tendered in the any and all offers, about $1.04 billion will be available to purchase notes in the maximum offers.

The tender offers will end 11:59 p.m. ET on June 16. The settlement date for the remaining notes is expected to be June 17.

The company is using proceeds from its $2.25 billion issue of split-rated notes to fund the tender offers. On May 19, it priced $1 billion of five-year notes at par to yield 5.75% and $1.25 billion of eight-year notes at par to yield 6.25%.

Barclays Capital Inc. (800 438-3242 or collect 212 528-7581) and J.P. Morgan Securities LLC (866 834-4666 or collect 212 834-4811) are the dealer managers for the tender offers. D.F. King & Co., Inc. (800 949-2583 or, for brokers and banks, 212 269-5550) is the depositary and information agent.

International Lease Finance is a Los Angeles-based aircraft lessor. The company is a wholly owned subsidiary of American International Group, Inc.

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