Atlas Air achieved a record low coupon of 1.48% for its $143.15 million US Export-Import (Ex-Im) Bank-backed bond offering with a 12-year average life.
Through the vehicle, Helios Leasing I, the deal priced at market swaps plus 48.1 basis points (bps) and re-financed a new Boeing 747-8F delivery.
Atlas Air also issued 12-year Ex-Im bonds to re-finance another Boeing 747-8F aircraft, MSN 37571, with BNP Paribas and KGS Alpha Capital Markets acting as the joint underwriters and bookrunners in the transaction.
The transaction follows a $143 million bond priced at midswaps plus 55 bps in October with a coupon at 1.562% In the first half of 2012, Atlas Air achieved a 2.018% coupon rate, or mid-swap plus 75 bps, in its first capital market transaction. In July the carrier refinanced another 747-8F at midswap plus 70bps for a coupon of 1.734%, becoming the lowest coupon achieved on an Ex-Im bond with a six-year average life.
Apple Bank for Savings, the arranging bank, originally financed the aircraft as part of an $865 million term-loan facility for six 747-8F deliveries to Atlas Air in 2012 and 2013.