By Abigail W. Adams
Portland, Me., Nov. 1 – Dubai Aerospace Enterprise Funding LLC sold a downsized $1 billion two-tranche offering of three-year and five-year senior notes on Thursday, according to a market source.
The deal included $500 million of three-year notes that priced at par to yield 5¼% and $500 million of five-year notes that priced at par to yield 5¾%.
The initial size of the deal was $1.25 billion.
Pricing came in line with talk in the 5¼% area for the three-year notes and 5¾% area for the five-year notes.
There is a poison put at 101%.
The five-year notes are callable from Nov. 15, 2020 to Nov. 15, 2021 at 102.875, from 2021 to 2022 at 101.438 and at par thereafter.
The deal was marketed via an investor conference call.
Morgan Stanley, BNP Paribas, Credit Agricole CIB, Deutsche Bank, Goldman Sachs, HSBC, Mizuho, Natixis and SunTrust Robinson Humphrey are joint bookrunners for the Rule 144A for life and Regulation S offering.
The three-year tranche is non-callable. The five-year tranche is callable after two years.
Proceeds will be used for the repayment of debt and for general corporate purposes.
Dubai Aerospace Enterprise is a Dubai-based aerospace corporation engaged in aircraft leasing and engineering activities.
| Issuer: | Dubai Aerospace Enterprise Funding LLC
|
| Amount: | $1 billion, decreased from $1.25 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley, BNP Paribas, Credit Agricole CIB, Deutsche Bank, Goldman Sachs, HSBC, Mizuho, Natixis and SunTrust Robinson Humphrey
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 14
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2021
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 236 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps
|
| Price talk: | 5¼% area
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2023
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 279 bps
|
| Equity clawback: | 40% at 105.75 until Nov. 15, 2020
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2020; callable at 102.875 in year one, 101.438 in year two and at par thereafter
|
| Price talk: | 5¾% area
|
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