New Issue: Western Global Airlines sells upsized $50 million tap of 10 3/8% notes due 2025 at 102

By Paul A. Harris

Portland, Ore., Sept. 11 – Western Global Airlines LLC priced an upsized $50 million add-on to its 10 3/8% senior notes due Aug. 15, 2025 (current ratings B3/B-/B+) at 102 with a 9.846% yield to maturity on Friday, according to a syndicate source.

The add-on size increased from $25 million.

The issue price came on top of price talk.

Left bookrunner RBC Capital Markets Corp. will bill and deliver. Truist Securities Inc. is a joint bookrunner.

The Estero, Fla.-based cargo airline plans to use the proceeds to establish an employee stock ownership plan.

Issuer:	Western Global Airlines LLC
Amount:	$50 million, increased from $25 million
Maturity:	Aug. 15, 2025
Security description:	Add-on to 10 3/8% senior notes due Aug. 15, 2025
Left lead bookrunner:	RBC Capital Markets Corp. (bill and deliver)
Joint bookrunner:	Truist Securities Inc.
Co-manager:	Regions Securities LLC
Coupon:	10 3/8%
Price:	102
Yield to maturity:	9.846%
Call:	Make-whole call at Treasuries plus 50 bps until May 15, 2025, then callable at par
Special call:	After the term loan A is paid off, prior to Jan. 1, 2022 the issuer may redeem 10% off the issue annually at 103
Trade date:	Sept. 11
Settlement date:	Sept. 25 with accrued interest
Current ratings:	Moody's: B3
	S&P: B-
	Fitch: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	102
Marketing:	Drive-by
Original issue:	$350 million priced in August 2020

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