BOC Aviation prices US$300 million senior unsecured notes

Dino D'Amore
By Dino D'Amore May 1, 2014 13:24

BOC Aviation prices US$300 million senior unsecured notes

BOC Aviation has priced its US$300 million 3.875% 5-Year Senior Unsecured Notes due 2019. The Notes will close on 9 May 2014, subject to the satisfaction of customary closing conditions.

The Notes were issued off BOC Aviation’s US$5 billion Euro Medium Term Note Programme (EMTN Programme), which was first established with a limit of US$2 billion in September 2012, and subsequently increased to US$5 billion in April 2014. The joint global coordinators were BOC International, Citigroup and HSBC. The joint lead managers and joint bookrunners were BNP Paribas, BOC International, Citigroup, DBS Bank Ltd., HSBC, JPMorgan and Morgan Stanley.

The Notes will be denominated in US dollars, and will bear a fixed interest coupon of 3.875% p.a., with interest payable semi-annually in arrears. The yield to investors will be 4.107% p.a., representing a spread of 2.40% p.a. over 5-year US Treasury notes. BOC Aviation will apply the net proceeds to fund its new capital expenditure, for general corporate purposes and/or refinancing existing borrowings.

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

Orders for the Notes were received from over 90 high quality fixed income accounts. In terms of geographic distribution, the Notes were distributed 75% in Asia and 25% in Europe. In terms of allocation, 36% were allocated to asset and fund managers, 31% to private banks, 15% to banks, 15% to insurers and 3% to corporates and others.

Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, said: “We are pleased with the results, which further diversifies our investor base. The positive response represents the confidence that the investment community has in BOC Aviation and the important role that we have in a growing aircraft leasing industry.”

Dino D'Amore
By Dino D'Amore May 1, 2014 13:24
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