Published on 9/9/2014 in the Prospect News Investment Grade Daily.
New Issue: Air Lease prices upsized $1 billion of notes due 2018, 2024
By Aleesia Forni
Virginia Beach, Sept. 9 – Air Lease Corp. sold an upsized $1 billion of senior notes (/BBB-/) in tranches due 2018 and 2024, according to a market source and an FWP filed with the Securities and Exchange Commission.
A $500 million tranche of 2.125% notes due 2018 sold at 99.65 to yield 2.235%, or Treasuries plus 120 basis points.
A $500 million tranche of 4.25% 10-year notes priced at Treasuries plus 185 bps. The notes sold at 99.196 to yield 4.35%.
Both tranches sold tighter than guidance.
The offering was upsized from $750 million.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, RBC Capital Markets, LLC, BMO Capital Markets Corp, BNP Paribas Securities Corp, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBS Securities Inc., SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for general corporate purposes, which may include the purchase of commercial aircraft and the repayment of debt.
Air Lease is a Los Angeles-based aircraft leasing company.
| Issuer: | Air Lease Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Joint bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch, RBC Capital Markets, LLC, BMO Capital Markets Corp, BNP Paribas Securities Corp, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBS Securities Inc., SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 16
|
| Change-of-control put: | 101%
|
| Rating: | Standard & Poor’s: BBB-
|
| Distribution: | SEC registered
|
|
|
| Notes due 2018
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2018
|
| Coupon: | 2.125%
|
| Price: | 99.65
|
| Yield: | 2.235%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 150 bps area
|
| Make-whole call: | Treasuries plus 20 bps
|
|
|
| Notes due 2024
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2024
|
| Coupon: | 4.25%
|
| Price: | 99.196
|
| Yield: | 4.35%
|
| Spread: | Treasuries plus 185 bps
|
| Price guidance: | Treasuries plus 200 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to June 15, 2024, then callable at par
|
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