Aircastle's wholly-owned subsidiary Aircastle Designated Activity Company (DAC) has priced an offering of $500 million senior unsecured notes due October 2031, issued on July 15, 2024. The notes have a coupon of 5.750% and an issue price of 99.650%.
The notes are priced against US Treasury rate plus a spread of 165 basis points. It had an initial price talk of US Treasuries plus a spread of approximately 195 basis points.
Moody's rated the offering at Baa3, BBB- by S&P Global Ratings, and BBB+ by Fitch Ratings.
The net proceeds will be used for general corporate purposes, which may include the acquisition of aircraft, as well as refinancing a portion of Aircastle's existing indebtedness. The offering is expected to close on July 18, 2024.
Aircastle had also published its first quarter results on July 11, 2024. Its total revenues were $205 million, while it reported a net income of $16 million. It reported an adjusted EBITDA of $186 million. During the quarter, it had acquired nine aircraft for $223 million, with its netbook value of flight equipment at $7.3bn up 7% compared to last year's first quarter.
The company's total liquidity as of July 5, 2024, was $2.6bn; comprising of $2bn of undrawn facilities, $0.5bn of projected adjusted operating cash flows and sales through July 5, 2025, and $0.1bn of unrestricted cash.
As of May 31, 2024, Aircastle owned 250 aircraft and other flight equipment having a netbook value of $7.3 billion.
Aircastle prices $500 million senior notes due 2031
