Nordic Aviation Capital (NAC) has announced it has priced a $858.83 million US Private Placement, which the firm said was the largest deal ever of its type by an aircraft lessor.
The pricing of the transaction was completed last week with closing and funding later this month and follows the $786.25million, Senior Unsecured Private Placement it completed in 2019, as the firm builds its liquidity pool.
The new transaction consists of three, five- and seven-year tenors with the majority being five years and has a weighted coupon of 3.92%.
In a statement NAC said 26 investors involved in the transaction, eight of which are new investor relationships. “We are very pleased with another landmark issue and the amount of support we have received from both new and existing investors. The issuing will enable NAC to further strengthen its market-leading platform and to actively pursue its ambitious corporate and market strategies,” says chief executive Søren M. Overgaard.
Steve Gorman, NAC’s chief funding officer said that raising more than last year’s placing was a validation of funding strategy and the regional aircraft sector in general.
“This issuance will enable the company to further unencumber its balance sheet reducing its secured debt to total assets to around 30%,” Gorman said.
The issue was arranged by Citigroup, Crédit Agricole, and Goldman Sachs.
Clifford Chance acted as counsel for NAC while Morgan, Lewis & Bockius acted as counsel for the note holders.