Air Lease Corporation (ALC) says some of the proceeds from its $400 million senior unsecured notes will pay down one of its revolving credit facilities, which currently bears an interest rate of approximately 2% per annum and matures on 4 May 2015.
The operating lessor closed its $400 million senior unsecured notes on 5 February, which are due in March 2020. The notes have a 4.75% interest rate.
The lessor also intends to use the proceeds of the offering to fund the acquisition of commercial aircraft and for other general corporate purposes.
The notes are payable semi-annually in arrears on 1 March and 1 September of each year, commencing on 1 September 2013.
BofA Merrill Lynch, Deutsche Bank Securities, JP Morgan, BMO Capital Markets, Citigroup, Credit Suisse Securities, RBC Capital Markets, RBS, and Wells Fargo Securities are acting as joint book-running managers for the offering of the notes.