Macquarie AirFinance has commenced an offering of $500 million senior notes due 2028 to investors in a private offering.
The notes will initially be jointly and severally guaranteed by each of the company’s direct and indirect subsidiaries, other than the servicing entities of the Macquarie AirFinance group and each secured group subsidiary as defined under the company’s Revolving Credit Facility.
The notes and the guarantees will be senior unsecured obligations of the company and the guarantors and will rank equally in right of payment with all of the existing and future senior unsecured debt that is not subordinated. The notes and the guarantees will rank junior to all existing and future secured debt to the extent of the value of the assets secured.
Macquarie AirFinance plans to use the net proceeds from the sale of the notes to prepay a portion of the outstanding principal amount of a 2015 term loan and to repay a portion of the principal amount outstanding under the company’s 2018 revolving credit facility.
Application will be made for the notes to be admitted to the Official List of the of the Cayman Islands Stock Exchange.