Air Lease has priced a $300 million preferred stock offering on September 17, 2024.
The public offering of 300,000 shares with a 6.00% fixed-rate reset non-cumulative perpetual preferred stock, Series D, has a liquidation preference of $1,000 per share.
The sale of the shares is expected to close on September 24, 2024. Dividends will accrue on a non-cumulative basis at an annual rate of 6.00% from the sale close until December 15, 2029. After this, the rate will adjust to the five-year US treasury rate plus 2.56%, provided that the dividend rate per annum during any reset period will not reset below 6.00%.
The dividends are payable quarterly in arrears on March 15, June 15, September 15, and December 15 of each year, beginning December 15, 2024.
The company intends to use a portion of the net proceeds to redeem its outstanding 6.15% fixed-to-floating rate non-cumulative perpetual preferred stock, Series A. Remaining proceeds will be used for general corporate purposes, which may include the purchase of commercial aircraft and the repayment of existing indebtedness.
Mizuho Securities USA, BMO Capital Markets, BofA Securities, J.P. Morgan Securities, RBC Capital Markets, and Wells Fargo Securities are acting as joint book-running managers for the offering of the shares.
The company said the offering is expected a BB+ rating from Standard & Poor's Rating Services, BB+ from Fitch Ratings, and BBB from Kroll Bond Rating Agency.