ALC announces $1.1 Billion of senior unsecured medium-term notes

Darren Wood
By Darren Wood September 10, 2019 10:51

ALC announces $1.1 Billion of senior unsecured medium-term notes

Air Lease Corporation (ALC) has announced its public offering of $600 million aggregate principal amount of 2.250% senior unsecured medium-term notes due January 15, 2023 and $500 million aggregate principal amount of 3.250% senior unsecured medium-term notes due October 1, 2029. 

The sale of the Notes is expected to close on September 16, 2019, subject to satisfaction of customary closing conditions.

ALC has been assigned a senior unsecured rating of A- with stable outlook for two–part medium-term notes by Kroll Bond Rating Agency (KBRA).

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

Fifth Third Securities, Inc., J.P. Morgan Securities LLC, SG Americas Securities, LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering of the Notes.

KBRA most recently affirmed the company’s issuer and senior unsecured debt ratings of A- on December 14, 2018.

The ratings of Air Lease are supported by strong financial fundamentals, KBRA has said. It is reflected by a low leverage strategy, strong profitability, liquidity and cash-flow metrics, and largely unencumbered asset base.

The rating also takes into account Air Lease’s strong management profile and the growing strength of its global franchise, which is backed by a young and in-demand fleet, a diverse customer base, substantial forward lease placement of orders, and a strong order book.

The ratings are further supported by the stable outlook of the global aircraft leasing industry. These strengths are balanced by the disciplined funding and placement planning required to manage the significant order book, an element of key-man risk despite good succession planning, the cyclical nature of the industry, potential credit quality issues in the airline industry as a whole, and event risks related to air travel in general, KBRA said.

Darren Wood
By Darren Wood September 10, 2019 10:51