By Cristal Cody
Tupelo, Miss., July 25 – Aviation Capital Group LLC sold $800 million of senior notes (/A-/BBB+) in two tranches on Wednesday, according to a market source.
The company priced $300 million of three-year floating-rate notes at Libor plus 67 basis points.
The floaters were talked to price in the Libor plus 70 bps area, plus or minus 3 bps, tighter than initial price talk in the Libor plus 95 bps to Libor plus 100 bps area.
Aviation Capital also sold $500 million of 4.125% seven-year fixed-rate notes at a Treasuries plus 145 bps spread, on the tight side of guidance set in the Treasuries plus 150 bps area, plus or minus 5 bps, and better than initial price talk in the Treasuries plus 170 bps area.
Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including the repayment of existing debt.
Aviation Capital Group, a privately-held subsidiary of Pacific Life Insurance Co., is a global aircraft leasing company based in Newport Beach, Calif.
| Issuer: | Aviation Capital Group LLC
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| Amount: | $800 million
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| Description: | Senior notes
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| Bookrunners: | Barclays, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA Inc.
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| Trade date: | July 25
|
| Ratings: | S&P: A-
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| Fitch: BBB+
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| Three-year floaters
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| Amount: | $300 million
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| Maturity: | July 30, 2021
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| Coupon: | Libor plus 67 bps
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| Price guidance: | Libor plus 70 bps area, plus or minus 3 bps; initial price talk at Libor plus 95 bps-100 bps area
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| Seven-year notes
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| Amount: | $500 million
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| Maturity: | Aug. 1, 2025
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| Coupon: | 4.125%
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| Spread: | Treasuries plus 145 bps
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| Price guidance: | Treasuries plus 150 bps area, plus or minus 5 bps; initial price talk at Treasuries plus 170 bps area
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