Published on 3/27/2019 in the Prospect News Investment Grade Daily.
New Issue: AerCap prices $1 billion of reopened, new issue senior notes
By Cristal Cody
Tupelo, Miss., March 27 – AerCap Holdings NV, through AerCap Ireland Capital DAC and AerCap Global Aviation Trust, priced $1 billion of guaranteed senior notes (Baa3/BBB-/BBB-) in a new issue and a reopening on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of reopened 4.875% senior notes due Jan. 16, 2024 at 103.866 to yield 3.965%, or a spread of 180 basis points over Treasuries.
AerCap originally sold $400 million of the notes on Jan. 9 at 99.833 to yield 4.913%, or a Treasuries plus 235 bps spread. The total outstanding is now $900 million.
A $500 million new issue tranche of 4.45% seven-year notes was sold at 99.869 to yield 4.472%. The spread was 220 bps over Treasuries.
Both tranches priced on top of guidance.
The bookrunners were Goldman Sachs & Co. LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, RBC Capital Markets LLC, Santander Investment Securities Inc. and TD Securities (USA) LLC.
The notes are guaranteed by AerCap Holdings.
Proceeds will be used for general corporate purposes, including to acquire, finance or refinance aircraft assets and to repay debt.
AerCap is an independent aircraft leasing company based in Amsterdam.
| Issuers: | AerCap Ireland Capital DAC/AerCap Global Aviation Trust
|
| Guarantor: | AerCap Holdings NV
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| Amount: | $1 billion
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| Description: | Senior notes
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| Bookrunners: | Goldman Sachs & Co. LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Barclays, BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, RBC Capital Markets LLC, Santander Investment Securities Inc. and TD Securities (USA) LLC
|
| Co-managers: | Citizens Capital Markets Inc., Fifth Third Securities Inc. and SG Americas Securities LLC.
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| Trade date: | March 27
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| Settlement date: | April 3
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
|
|
|
| Add-on notes due 2024
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| Amount: | $500 million reopening
|
| Maturity: | Jan. 16, 2024
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| Coupon: | 4.875%
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| Price: | 103.866
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| Yield: | 3.965%
|
| Spread: | Treasuries plus 180 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps before Dec. 16, 2023; thereafter at par
|
| Total outstanding: | $900 million, including $400 million of notes priced Jan. 9 at 99.833 to yield 4.913%, or Treasuries plus 235 bps
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| Price guidance: | Treasuries plus 180 bps; initial talk at Treasuries plus 195 bps area
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|
|
| Seven-year notes
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| Amount: | $500 million
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| Maturity: | April 3, 2026
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| Coupon: | 4.45%
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| Price: | 99.869
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| Yield: | 4.472%
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| Spread: | Treasuries plus 220 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps before Feb. 3, 2026; thereafter at par
|
| Price guidance: | Treasuries plus 220 bps; initial talk at Treasuries plus 245 bps area
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