Aircastle sets $400M bond issue backing buy of aviation assets

Aircastle has today announced a $400 million issue of seven-year unsecured notes in a private placement via 144A/Reg S. Proceeds will be used for general corporate purposes, including the purchase of aviation assets, the company said.

The firm last tapped the high-yield market in April this year, with a $500 million tranche of 6.75% notes due 2017, and a $300 million tranche of 7.625% notes due 2020. The deal came via bookrunners Goldman Sachs, Citi, and J.P. Morgan. Proceeds were used to refinance debt outstanding under its Term Financing No. 1, with excess proceeds slated for general corporate purposes.

The company’s 2017 notes are wrapped around 106.5, according to CMA Quotevision.

For the quarter ended Sept. 30, Aircastle reported total revenue of $172.9 million, up from $141.5 million in the same period last year. Lease rental and maintenance revenues were higher, resulting in an 18% increase in adjusted EBITDA, to $166.3 million. Cash on balance sheet stood at $224 million against debt of roughly $3 billion, of which $2.54 billion was secured debt.

Aircastle is an aircraft-leasing company. It is rated BB+/Ba2. – Staff reports

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