By Angela McDaniels
Tacoma, Wash., June 26 - Air Lease Corp. issued $132.05 million of 5 5/8% senior notes due 2017 through an exchange offer, according to an 8-K filing with the Securities and Exchange Commission.
The 5 5/8% notes are an add-on to the company's $1 billion of non-callable notes that priced in March 2012.
As previously reported, the company offered to issue up to $151,614,000 of the 5 5/8% notes in exchange for any and all of its 7 3/8% senior notes due 2019.
The exchange offer began June 11, expired June 20 and settled June 26.
The total principal amount of 7 3/8% notes outstanding at the start of the offer was $143.95 million. The company originally issued $155 million of the 7 3/8% notes in January 2012 and made a scheduled prepayment of $11.05 million on Jan. 30.
For each $1,000 "original face amount" of 7 3/8% notes tendered by the expiration of the offer, holders received an exchange consideration of $978.15 principal amount of 5 5/8% notes. The "original face amount" is based on the $155 million aggregate principal amount at issuance.
The exchange consideration, expressed per $1,000 currently remaining principal amount of old notes (of the $143.95 million outstanding) accepted for exchange, is in effect $1,053.24 principal amount of new notes.
Holders were entitled to receive accrued interest on the old notes up to but excluding the settlement date. At the same time, they were required to pay accrued interest on the new notes. As a result, the company paid holders an accrued interest adjustment amount.
Holders received an accrued interest adjustment amount in cash of $14.35 per $1,000 original face amount of 7 3/8% notes or, equivalently, $15.45 per $1,000 remaining principal amount of old notes.
Holders had to tender notes in minimum denominations of $100,000 original face amount, but the exchange offer was not subject to any overall minimum tender condition.
Air Lease is a Los Angeles-based aircraft leasing company.
| Issuer: | Air Lease Corp.
|
| Issue: | Senior notes
|
| Amount: | $1,132,046,000, increased from $1 billion
|
| Maturity: | April 1, 2017
|
| Coupon: | 5 5/8%
|
| Call protection: | Non-callable
|
| Make-whole option: | Treasuries plus 50 basis points
|
| Equity clawback: | 40% at 105.625 until April 1, 2015
|
| Trade date: | March 13, 2012 for original issue
|
| Settlement dates: | March 16, 2012 for original issue; June 26 for add-on
|
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