SMBC Aviation capital has closed the sale of $500 million five-year senior unsecured notes, priced at 3.55%.
The sale was undertaken by the group’s subsidiary, SMBC Aviation Capital Finance DAC, with the notes, due April 2024, fully and unconditionally guaranteed by SMBC Aviation Capital.
The proceeds from the offering will be used for general corporate purposes, which could include the purchase of aircraft and the repayment of existing debt.
“The successful completion and attractive pricing of this transaction is yet another endorsement from the market of SMBC Aviation Capital’s strategy and long-term growth prospects," said Barry Flannery, Chief Financial Officer of SMBC Aviation Capital. “The pricing achieved proves that our quality portfolio and long track record combined with our strong balance sheet and future prospects are compelling and differentiating factors for us, and this transaction is another significant milestone in the development of our third-party funding plans for the business.”