AerCap cuts spread on $2 billion term loan B to Libor plus 200 bps

By Sara Rosenberg

New York, Nov. 2 – AerCap Holdings NV (Setanta Aircraft Leasing DAC) reduced pricing on its $2 billion seven-year term loan B (Baa2/BBB) to Libor plus 200 basis points from talk in the range of Libor plus 225 bps to 250 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

The term loan still has 0% Libor floor and 101 soft call protection for six months.

There is no amortization on the term loan, but it is subject to a loan-to-value threshold.

Citigroup Global Markets Inc. and Goldman Sachs Bank USA are the joint mandated lead arrangers on the deal. Citigroup is the administrative agent.

Recommitments were scheduled to be due at 2 p.m. ET on Tuesday, the source added.

Proceeds will be used to help fund the recently completed acquisition of GE Capital Aviation Services business from GE and for general corporate purposes.

The company has already priced $21 billion of senior notes for the transaction.

Under the terms of the agreement, GE received consideration valued at more than $30 billion, including about $24 billion in cash, 111.5 million ordinary shares equivalent to around 46% ownership of the combined company with a market value of about $6 billion as of March 9, 2021, and $1 billion paid in AerCap notes and/or cash upon closing.

AerCap is a Dublin-based aircraft leasing company. GE Capital Aviation Services is an aviation lessor and financier.

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