By Paul A. Harris
Portland, Ore., Dec. 14 – Griffin Global Asset Management Holdings, Ltd. priced an upsized $300 million add-on to the GGAM Finance Ltd. 8% senior bullet notes due June 15, 2027 at 101 to yield 7.64% in a Thursday drive-by, according to market sources.
The issue size increased from $100 million.
The price came at the rich end of the 100.75 to 101 price talk. Early guidance was 100 to 100.5.
Goldman Sachs & Co. LLC was the left bookrunner.
Mizuho Securities USA Inc., BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, SMBC Nikko Securities America Inc., SG Americas Securities LLC and BMO Capital Markets Corp. joined as joint bookrunners.
Proceeds will be used to finance the acquisition of new aircraft deliveries, in particular the Pipeline Aircraft. If the delivery date of any of the Pipeline Aircraft changes or if GGAM Finance determines that the proceeds would be more efficiently allocated to other aircraft-finance related purposes, proceeds could be used to refinance aircraft currently owned by the Palisade Aviation Holdings Warehouse, Ltd. subsidiaries and financed under the Warehouse facility, in which case the aircraft will be transferred from the Palisade Warehouse to direct or indirect wholly owned subsidiaries of the issuer and will thereafter be unencumbered. Any excess proceeds will be used for general corporate purposes.
Incremental proceeds resulting from the $200 million upsize of the deal may be used to refinance aircraft currently owned by the Warehouse subsidiaries and financed under the Warehouse facility.
The issuing entity is a subsidiary of Griffin Global, a commercial aircraft leasing and alternative asset management business with offices in Dublin, Ireland, Puerto Rico and Los Angeles.
| Issuer: | GGAM Finance Ltd.
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| Amount: | $300 million
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| Securities: | Senior notes
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| Maturity: | Feb. 15, 2027
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| Joint books: | Goldman Sachs & Co. LLC (left), Mizuho Securities USA Inc., BofA Securities, Inc., Barclays, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, MUFG Securities Americas Inc., PNC Capital Markets LLC, SMBC Nikko Securities America Inc., SG Americas Securities LLC and BMO Capital Markets Corp.
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| Coupon: | 8%
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| Price: | 101
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| Yield to maturity: | 7.64%
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| Spread: | Treasuries plus 358 bps
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| Call protection: | Callable after Aug. 15, 2026 at par, otherwise non-callable
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| Trade date: | Dec. 14
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| Settlement date: | Dec. 22
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 100.74 to 101
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| Marketing: | Drive-by
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| Original issue: | $400 million priced on Nov. 15, 2023
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| Fungibility: | Add-on notes will become fungible with original notes
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