BOCA notes price at 2.875%

Victoria
By Victoria September 28, 2012 14:54

BOCA notes price at 2.875%

BOC Aviation has priced its debut $500 million five-year senior unsecured notes at 2.875%. The notes, which are due in September 2017 and will yield 2.978% per annum, represent a spread of 2.35% over the five-year US Treasury note, with interest.

Standard & Poor’s Ratings Services assigned its ‘BBB-‘ rating to the notes under its US$2 billion medium-term notes program. The issue rating is one notch below the corporate credit rating as BOC Aviation’s total secured debt exceeds S&P’s notching threshold of 20% of total assets.

Last week, BOCA established a US$2 billion Euro Medium Term Note Programme (EMTN Programme) that will be listed on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Proceeds from this issuance will be used to fund new capital expenditure, general corporate purposes and/or refinancing existing borrowings.

“Debt capital markets financing represented only 5% of our financing as at 30 June 2012. We have been looking to diversify our funding sources and feel this is a good time to put the EMTN Programme in place.” said Phang Thim Fatt, Deputy Managing Director and Chief Financial Officer of BOC Aviation.

Citigroup and HSBC have been mandated as arrangers for the EMTN Programme, and will act as dealers together with BOC International, DBS Bank Ltd, JP Morgan and Morgan Stanley. BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 194 owned and managed aircraft operated by airlines worldwide. It has 60 aircraft on firm order. The Company has one of the youngest fleets in the industry with an average owned aircraft age of less than four years.

Victoria
By Victoria September 28, 2012 14:54
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