ALC's Q1 net income improves to $26.9m

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Air Lease Corporation's first quarter net income improved to $26.9 million from $24.7 million in the fourth quarter 2011 and $3.7 million in the year-earlier period.

Revenues increased to $132.6 million from $115 million in the fourth quarter and $55 million in the year-earlier period.

Selling, general and administrative costs rose 37% to $13.6 million from the first quarter 2011.

The lessor ended the first quarter to 31 March with liquidity of $1.6 billion.

During the quarter, ALC raised $1.7 billion of incremental debt financing. Of this amount $1.5 billion, or 88.5%, is unsecured, comprising $1 billion in senior unsecured notes, $155 million in senior unsecured notes issued in a private placement, $200 million in short-term unsecured bridge financing in connection with the closing of four European export credit agency-supported aircraft deliveries, $115 million in unsecured term financing and $12.5 million of seller financing.

Total unsecured debt outstanding at quarter end was $1.9 billion. Its unsecured debt, as a percentage of total debt, increased to 50.5% as of 31 March from 31.7% as of 31 December.

ALC's fixed debt as a percentage of total debt increased to 51.5% at quarter end from 24.3% as of 31 December.

The lessor has continued with its financing initiative by entering into a three-year senior unsecured revolving credit facility in the second quarter in excess of $850 million at Libor plus 1.75% with no Libor floor.

During the quarter, ALC took delivery of 12 additional aircraft from its pipeline, growing the fleet to 114 units.

It entered into contracts for the lease of all 35 aircraft delivering in 2012, as well as 28 out of 30 new aircraft delivering in 2013, for 22 out of 26 new aircraft delivering in 2014 and five out of 24 new aircraft delivering in 2015.