AerCap starts investor calls for acquisition bond offering

By Cristal Cody

Chicago, Oct. 20 – AerCap Ireland Capital DAC and AerCap Global Aviation Trust has started investor calls on Wednesday for its upcoming six-part offering of dollar-denominated senior notes (//BBB-) and possible euro tranches, a market source told Prospect News.

Citigroup and Goldman Sachs, the joint global coordinators, are arranging the calls.

The company outlined some of the terms for the dollar notes in a 424B3 filing with the Securities and Exchange Commission on Tuesday.

As reported Tuesday, the notes will be guaranteed by AerCap Holdings NV.

Five of the dollar tranches are expected to have fixed coupons, and one part will have a floating rate based on SOFR that will reset quarterly.

Proceeds will be used to fund a portion of the $24 billion cash consideration to be paid in the GE Aviation acquisition, with any excess proceeds to be used for general corporate purposes.

AerCap is acquiring the part of the Gecas business that includes GE Aviation’s 50% joint venture ownership in Shannon Engine Support Ltd. AerCap entered into a $19 billion bridge credit agreement and a $5 billion term loan credit agreement in relation to the transaction.

AerCap is an independent aircraft leasing company based in Dublin.

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