China Aircraft Leasing Group (CALC) has launched a tender offer to purchase for cash the outstanding amount of two US dollar bonds due 2024.
The Offers are being made as part of the Group's “proactive approach in debt management aiming to enhance its international credit rating”. CALC aims for the purchase offering to reduce short-term liabilities and optimise the debt structure to control interest expenses. The offers will be funded through the company's operational cash flows and/or existing cash on its balance sheet.
The two USD bonds to be purchased under the tender offer memorandum include the US$200 million 5.50% Guaranteed Bonds due March 2024 and US$100 million 4.85% Guaranteed Notes due December 2024 with purchase price of US$982 and US$935 per US$1,000 principal amount, respectively.
"The Group boasts highly liquid quality assets and maintains financial strength with sufficient liquidity,” said Mike Poon, Executive Director and Chief Executive Officer of CALC. “We have strong confidence in achieving sustainable business growth along with recovery in aviation. By proactively managing our liabilities to optimize our debt structure, we aim to further improve our operational and financial robustness through various measures so as to move towards investment-grade credit rating and create long-term returns and value for our shareholders and the broader investment community."