BOC Aviation prices inaugural US$750 million Rule 144A/Regulation S notes

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By TESTCustomwebLP TESTCustomwebLP March 24, 2015 20:40

BOC Aviation prices inaugural US$750 million Rule 144A/Regulation S notes

BOC Aviation has priced its inaugural issuance of Rule 144A/Regulation S US$750 million five-year fixed rate senior unsecured notes due 2020 at a coupon of 3% per annum.

The transaction was issued under BOC Aviation’s US$5 billion Global Medium Term Note (GMTN) Program. The joint bookrunners for the issue were BOC International, Citigroup, HSBC and JPMorgan. Morgan Stanley acted as co-manager.

The Notes will bear a fixed interest coupon of 3% per annum with interest payable semi-annually in arrears. The yield to investors will be 3.118% per annum, representing a spread of 170 basis points per annum over 5-year US Treasury. BOC Aviation will apply the net proceeds to fund capital expenditure, refinance existing borrowings or for general corporate purposes.

The Notes will be listed on the SGX-ST, and will be rated BBB+ by Standard & Poor’s Rating Services, and A- by Fitch Ratings.

In terms of distribution, the Notes were allocated to 284 accounts in the United States (50%), Asia (39%) as well as Europe and Middle East (11%).

Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, said: “This is our largest bond transaction to date. We are very pleased with the positive response to our inaugural Rule 144A/Reg S issuance following the conversion to a GMTN program. We have successfully broken new ground, accessing a new investor base in the United States and further diversifying our funding sources.”

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By TESTCustomwebLP TESTCustomwebLP March 24, 2015 20:40