AerCap readies launch of $2 billion term loan B for Monday

By Sara Rosenberg

New York, Oct. 22 – AerCap Holdings NV (Setanta Aircraft Leasing DAC) is scheduled to hold a lender call at 10 a.m. ET on Monday to launch a $2 billion seven-year term loan B, according to a market source.

Citigroup Global Markets Inc. and Goldman Sachs Bank USA are the joint mandated lead arrangers on the deal. Citigroup is the administrative agent.

Price talk on the term loan is Libor plus 225 basis points to 250 bps with a 0% Libor floor and an original issue discount of 99.5, the source said.

The term loan has 101 soft call protection for six months.

There is no amortization on the term loan, but it is subject to a loan-to-value threshold.

Expected term loan ratings are Baa2/BBB.

Commitments are due at noon ET on Nov. 2, the source added.

Proceeds will be used to help fund the acquisition of GE Capital Aviation Services business from GE and for general corporate purposes.

The company has already priced $21 billion of senior notes for the transaction.

Under the terms of the agreement, GE will receive consideration valued at more than $30 billion, including about $24 billion in cash, 111.5 million ordinary shares equivalent to around 46% ownership of the combined company with a market value of about $6 billion as of March 9, 2021, and $1 billion paid in AerCap notes and/or cash upon closing.

Closing is targeted for Nov. 5.

AerCap is a Dublin-based aircraft leasing company. GE Capital Aviation Services is an aviation lessor and financier.

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