Dubai Aerospace Enterprise (DAE) has delivered a notice of early redemption to the holders of the company’s US$500 million 5.75% senior notes due 2023. The redemption date is scheduled for March 1, 2021. The outstanding principal amount as of the date of the Redemption Notice was approximately US$456.1 million. The Notes have a redemption price equal to 102.875% of the principal amount of the Notes plus accrued and unpaid interest. Wells Fargo is the trustee and paying agent for the notes.
Meanwhile, DAE has also price a US$300 million offering of 1.625% notes due 2024. The notes represent senior unsecured obligations and will be issued under DAE’s US$2.5 billion Global Medium-Term Note Program, which is rated ‘BBB-‘ by Fitch Ratings and ‘Baa3’ by Moody’s Investors Service.
The notes – sold at a price of 99.427% - will be issued by DAE Funding and guaranteed by Dubai Aerospace Enterprise (DAE).
The net proceeds will be used for general corporate purposes including redemption of certain outstanding debt securities issued by DAE Funding.