Published on 1/4/2024 in the Prospect News Investment Grade Daily.
New Issue: AerCap prices $1.5 billion of guaranteed senior fixed-rate notes due 2029, 2034
By Wendy Van Sickle
Columbus, Ohio, Jan. 4 – AerCap Ireland Capital DAC and AerCap Global Aviation Trust priced $1.5 billion of guaranteed senior notes (Baa2/BBB/BBB) in two tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $800 million of 5.1% senior notes due Jan. 19, 2029 at a spread of 140 basis points over Treasuries. These notes priced at 98.819 to yield 5.371%.
A $700 million tranche of 5.3% notes due Jan. 19, 2034 priced at 160 bps over Treasuries. These notes priced at 97.729 to yield 5.599%.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and Truist Securities, Inc. were the active bookrunners. Credit Agricole Securities (USA) Inc., RBC Capital Markets, LLC, Wells Fargo Securities, LLC, HSBC Securities (USA) Inc. and SG Americas Securities, LLC were passive bookrunners.
The notes are guaranteed by AerCap Holdings NV.
Proceeds will be used to acquire, invest in, finance or refinance aircraft assets, to repay debt and for other general corporate purposes.
The aircraft leasing company is based in Dublin.
| Issuers: | AerCap Ireland Capital DAC and AerCap Global Aviation Trust
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| Guarantor: | AerCap Holdings NV
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| Amount: | $1.5 billion
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| Issue: | Senior notes
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, MUFG Securities Americas Inc. and Truist Securities, Inc. (active) and Credit Agricole Securities (USA) Inc., RBC Capital Markets, LLC, Wells Fargo Securities, LLC, HSBC Securities (USA) Inc. and SG Americas Securities, LLC (passive)
|
| Co-managers: | Fifth Third Securities Inc., KeyBanc Capital Markets Inc. and Scotia Capital (USA) Inc.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Cravath, Swaine & Moore LLP (New York and U.S. law), McCann FitzGerald LLP (Irish law), NautaDutilh NV (Dutch law), Morris, Nichols, Arsht & Tunnell LLP (Delaware law) and Smith, Gambrell & Russell, LLP (California law)
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Change-of-control put: | At 101 upon certain triggering events
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| Trade date: | Jan. 4
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| Settlement date: | Jan. 11
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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|
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| Notes due 2029
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| Amount: | $800 million
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| Maturity: | Jan. 19, 2029
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| Coupon: | 5.1%
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| Price: | 98.819
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| Yield: | 5.371%
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| Spread: | Treasuries plus 140 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Dec. 19, 2028, then a par call
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| Cusip: | 00774MBJ3
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|
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| Notes due 2034
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| Amount: | $700 million
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| Maturity: | Jan. 19, 2034
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| Coupon: | 5.3%
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| Price: | 97.729
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| Yield: | 5.599%
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| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole call at Treasuries plus 25 bps until Oct. 19, 2033, then a par call
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| Cusip: | 00774MBH7
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