SMBC Aviation Capital’s wholly-owned subsidiary, SMBC Aviation Capital Finance DAC, has closed the sale of $500 million principal amount of 1.900%, five-year senior unsecured notes due October 2026. The notes are fully and unconditionally guaranteed by SMBC Aviation Capital.
This bond placement – priced at US Treasuries plus 93 basis points – represents SMBC Aviation Capital’s tightest spread achieved to date reflecting the fact that its bonds currently trade the tightest in the sector. This deal follows the company’s seven-year, $500m bond issuance in June 2021.
Eithne Manning, Acting Chief Financial Officer, SMBC Aviation Capital, said: “This further bond issuance at an industry leading pricing further strengthens SMBC Aviation Capital’s strong liquidity position. Our ongoing strong shareholder support, together with our ability to access third party debt financing on market leading terms, is a key point of competitive differentiation. This additional financing means we are well positioned to capitalise on opportunities within an airline sector that is recovering from the pandemic.”