Air Lease Corporation has closed a public offering of $400 million in aggregate principal amount of 4.750% senior unsecured notes due 2020. The Notes will mature on March 1, 2020 and will bear interest at a rate of 4.750% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on September 1, 2013.
ALC intends to use the net proceeds of the offering to fund the acquisition of commercial aircraft and for other general corporate purposes, including reducing outstanding obligations under one of its revolving credit facilities.
BofA Merrill Lynch, Deutsche Bank Securities, JP Morgan, BMO Capital Markets, Citigroup, Credit Suisse Securities, RBC Capital Markets, RBS, and Wells Fargo Securities acted as joint book-running managers for the offering of the Notes.
Meanwhile, ALC has signed a contract for 25 A350 XWB Family aircraft, consisting of 20 A350-900 and five A350-1000, with options for five additional A350-1000s.
Concurrently, ALC has signed a purchase order for 14 A321neo aircraft following an earlier agreement announced at the 2012 Farnborough International Air Show for 36 A320neo Family aircraft plus 14 options.