By Paul A. Harris
Portland, Ore., Oct. 16 – Amsterdam-based AerCap Holdings NV priced an upsized $1 billion issue of five-year senior bullet notes (Ba2/BB+/BB+) at par to yield 4 5/8% on Friday, according to a syndicate source.
The deal-size was increased from $400 million.
The yield printed at the tight end of the official yield talk in the 4¾% area and came cheap to initial pro forma expectations of 5%.
The deal played to a book thought to contain around $5 billion of orders and came about 50 basis points cheap to AerCap’s 4¼% notes due July 1, 2020 which were trading at a yield of 4 1/8% on Friday, a trader said, pointing out that the new 4 5/8% notes due Oct. 30, 2020 come with a tenor that is approximately four months longer than that of the existing 4 1/8% notes.
The deal was trading at 101¼ bid, 101¾ offered in the secondary, a trader said.
Joint bookrunner Citigroup Global Markets will bill and deliver.
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 were also joint bookrunners.
The notes come with an investment grade-style covenant package.
The issuing entities will be AerCap Ireland Capital Ltd. (Ireland) and AerCap Global Aviation Trust (Delaware), both wholly owned subsidiaries of AerCap, an aircraft leasing company, which plans to use the proceeds for general corporate purposes.
| Issuer: | AerCap Ireland Capital Ltd. (Ireland) and AerCap Global Aviation Trust (Delaware)
|
| Amount: | $1 billion, increased from $400 million
|
| Maturity: | Oct. 20, 2020
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets (bill and deliver), 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, Wells Fargo Securities LLC
|
| Co-managers: | BNP Paribas, Fifth Third Bank, HSBC Bank, Scotia Capital, SunTrust Robinson Humphrey
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Spread: | 327 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Investor put: | 101% upon change of control
|
| Trade date: | Oct. 16
|
| Settlement date: | Oct. 21
|
| Ratings: | Moody's: Ba2
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| Standard & Poor's: BB+
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 4¾% area
|
| Marketing: | Quick to market
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