ALC prices $250 million preferred offering

Lauren Eldershaw
By Lauren Eldershaw February 27, 2019 16:25

ALC prices $250 million preferred offering

Air Lease Corporation (ALC) has priced its public offering of 10,000,000 shares of 6.150% fixed-to-floating non-cumulative perpetual preferred stock, Series A, par value $0.01 per share, with a liquidation preference of $25.00 per share, at a price to the public of $25.00 per share. The sale is expected to close on March 5, 2019.

Dividends will accrue at a fixed rate for the first five years and then float within a three month LIBOR spread. Dividends are discretionary and non-cumulative. The preferred stock will rank senior to AL’s common stock and junior to all AL’s existing and future debt obligation.

Kroll Bond Rating Agency (KBRA) has assigned a debt rating of BBB with a Stable Outlook to the non stock, which is two notches below the issuer and senior unsecured debt rating of A-.

ALC intends to apply to list the Shares on the New York Stock Exchange under the symbol “AL PRA”. If the application is approved, ALC expects trading of the shares on the New York Stock Exchange to commence within 30 days after issuance.

ALC intends to use the net proceeds of the offering for general corporate purposes, which may include the purchase of commercial aircraft and the repayment of existing indebtedness.

Merrill Lynch, Morgan Stanley, Wells Fargo and JPMorgan are acting as joint book-running managers for the offering of the shares.

Lauren Eldershaw
By Lauren Eldershaw February 27, 2019 16:25