Published on 8/11/2021 in the Prospect News Investment Grade Daily.
New Issue: Air Lease prices $1.1 billion of senior notes in two tranches
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Aug. 11 – Air Lease Corp. priced $1.1 billion of senior notes (/BBB/BBB/Kroll: A-) in two tranches on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company sold $600 million of 0.8% three-year notes at 99.325 to yield 1.029%, or a spread of 60 basis points over Treasuries.
Initial price talk was in the Treasuries plus 90 bps area, according to a market source.
A $500 million tranche of 2.1% notes due Sept. 1, 2028 priced at 98.323 to yield 2.36%. The notes priced at a 125 bps over Treasuries spread, compared to guidance in the 155 bps over Treasuries area.
Bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., BofA Securities, Inc., Fifth Third Securities, Inc., Loop Capital Markets LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, Santander Investment Securities Inc., SG Americas Securities, LLC, Truist Securities, Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, NatWest Markets Securities Inc., Regions Securities LLC, Citizens Capital Markets, Inc., KeyBanc Capital Markets Inc., CIBC World Markets Corp., Mischler Financial Group, Inc., Arab Banking Corp. BSC and Morgan Stanley & Co. LLC.
Air Lease is a Los Angeles-based aircraft leasing company.
| Issuer: | Air Lease Corp.
|
| Amount: | $1.1 billion
|
| Description: | Series A senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC, Wells Fargo Securities, LLC, BMO Capital Markets Corp., BofA Securities, Inc., Fifth Third Securities, Inc., Loop Capital Markets LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, Santander Investment Securities Inc., SG Americas Securities, LLC, Truist Securities, Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, NatWest Markets Securities Inc., Regions Securities LLC, Citizens Capital Markets, Inc., KeyBanc Capital Markets Inc., CIBC World Markets Corp., Mischler Financial Group, Inc., Arab Banking Corp. BSC and Morgan Stanley & Co. LLC
|
| Co-managers: | CIT Capital Securities LLC and Keefe, Bruyette & Woods, Inc.
|
| Trade date: | Aug. 11
|
| Settlement date: | Aug. 18
|
| Ratings: | S&P: BBB
|
| Fitch: BBB
|
| Kroll: A-
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $600 million
|
| Maturity: | Aug. 18, 2024
|
| Coupon: | 0.8%
|
| Price: | 99.325
|
| Yield: | 1.029%
|
| Spread: | Treasuries plus 60 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps before July 18, 2024; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 90 bps area
|
| Cusip: | 00914AAP7
|
|
|
| Seven-year notes
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| Amount: | $500 million
|
| Maturity: | Sept. 1, 2028
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| Coupon: | 2.1%
|
| Price: | 98.323
|
| Yield: | 2.36%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps before July 1, 2028 thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 155 bps area
|
| Cusip: | 00914AAQ5
|
|
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