AerCap to price $400 million five-year bullet in Friday drive-by

By Paul A. Harris

Portland, Ore., Oct. 16 – AerCap Holdings NV plans to price $400 million of five-year senior bullet notes (Ba2/BB+/BB+) on Friday following a mid-morning conference call with investors, according to a syndicate source.

The deal comes with pro forma guidance of 5%, according to a trader in New York.

However the book size was already $2 billion at mid-morning on the East Coast of the United States, prompting the trader to look for talk to tighten to perhaps 4½% to 4¾%.

Joint bookrunner Citigroup Global Markets will bill and deliver for the public offer.

BofA Merrill Lynch, Credit Agricole CIB, Morgan Stanley & Co., Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Mizuho Securities, RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities LLC are also joint bookrunners.

BNP Paribas, Fifth Third Bank, HSBC Bank, Scotia Capital and SunTrust Robinson Humphrey are co-managers.

The notes come with an investment grade-style covenant package.

They feature a make-whole call at Treasuries plus 50 basis points but are otherwise non-callable. They have a 101% poison put.

The issuing entities will be AerCap Ireland Capital Ltd. (Ireland) and AerCap Global Aviation Trust (Delaware), both wholly owned subsidiaries of Schiphol, Netherlands-based AerCap, an aircraft leasing company, which plans to use the proceeds for general corporate purposes.

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