SMBC Aviation Capital Finance has closed a $1bn senior unsecured notes offering. The notes, due 2033, priced with a 5.700% coupon and at US Treasuries plus 195 basis points - were offered at 99.661% of par.
This is the first time SMBC Aviation Capital has issued a ten-year bond and is the company's second bond placement this year following the five-year senior unsecured notes in May. The company states that this latest transaction underlines investor appetite for exposure to the business and further strengthens the company’s strong financial position.
SMBC Nikko, Citi, Credit Agricole-CIB, Goldman Sachs, JPMorgan and RBC Capital Markets are joint bookrunners.
Aisling Kenny, chief financial officer, SMBC Aviation Capital, said: “This bond issuance is the first 10-year bond offering by the business since the inception of our bond programme in 2016. The strength and size of the orderbook for this issuance demonstrates the investor appetite for SMBC Aviation Capital at all points of the tenor curve. Our ability to access long term debt at competitive pricing, along with our ongoing strong shareholder support, is a key competitive advantage for SMBC Aviation Capital.”