SMBC Aviation Capital, via subsidiary SMBC Aviation Capital Finance DAC, has closed the sale of $650 5.450%, five-year senior unsecured notes due May 2028. The notes, which are fully and unconditionally guaranteed by SMBC Aviation Capital, priced at US Treasuries plus 200 basis points.
Goldman Sachs, Citi, Credit Agricole-CIB, JPMorgan, RBC Capital Markets and SMBC Nikko were joint bookrunners.
This is SMBC Aviation Capital’s first bond issuance since October 2021 and first bond issuance since the acquisition of Goshawk in December 2022. It is the company’s 7th successful bond offering following its debut capital markets issuance in July 2016 and the lessor said that it "emphasises the importance of the company’s bond programme in the business’s capital structure".
“This bond issuance is the first bond offering by the business since late 2021," said Aisling Kenny, Chief Financial Officer, SMBC Aviation Capital. "The strength and size of the orderbook for this issuance demonstrates the investor appetite for SMBC Aviation Capital and further strengthens our strong financial position. Our ongoing strong shareholder support, our ability to access debt financing from multiple funding avenues and our high-quality portfolio and customer base, continue to be key competitive advantages.”