Published on 3/30/2012 in the Prospect News High Yield Daily.
New Issue: Aircastle prices $800 million of five-, eight-year senior notes
By Paul A. Harris
Portland, Ore., March 30 - Aircastle Ltd. priced $800 million of senior notes (Ba3/BB+/) in two tranches on Friday, according to market sources.
The Stamford, Conn.-based firm priced a $500 million tranche of five-year notes at par to yield 6¾%, on top of price talk.
Aircastle also priced a $300 million tranche of restructured non-callable eight-year notes at par to yield 7 5/8%. The yield printed at the tight end of price talk that had been set in the 7¾% area. Call protection on the eight year notes was increased from four years.
Goldman Sachs & Co., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the joint bookrunners for the Rule 144A and Regulation S offering.
Proceeds will be used to repay bank debt, with any remaining proceeds to be used for general corporate purposes, including the purchase of aviation assets.
Aircastle leases and sells commercial jet aircraft to passenger and cargo airlines.
| Issuer: | Aircastle Ltd.
|
| Amount: | $800 million
|
| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co., Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Co-managers: | Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Jefferies & Co. Inc., RBC Capital Markets, LLC, Wells Fargo Securities, LLC
|
| Trade date: | March 30
|
| Settlement date: | April 4
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2017
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Equity clawback: | 35% at 106.75 until April 15, 2015
|
| Price talk: | 6¾% area
|
|
|
| Eight-year notes
|
| Amount: | $300 million
|
| Maturity: | April 15, 2020
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Call protection: | Non-callable, increased from four years
|
| Make-whole: | Treasuries plus 50 bps
|
| Equity clawback: | 35% at 107.625 until April 15, 2015
|
| Price talk: | 7¾% area
|
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