Nordic Aviation Capital has raised $786 million in one of the largest unsecured private placements ever for an aircraft lessor.
The transaction – rated BBB by Kroll Bond Rating Agency – has two tranches, respectively consisting of five- and seven-year notes. The proceeds will refinance aircraft already in the lessor's portfolio.
Citi, Deutsche Bank, Goldman Sachs and RBC Capital Markets are the arrangers.
Launched at $250 million, the deal more than trebled in size after significant oversubscription, involving both repeat and new investors. NAC says the transaction is "believed" to be the largest US private placement by an aircraft leasing company.
"Unsecured funding improves our operational flexibility and supports our position as the largest regional aircraft lessor," states NAC chief executive Soren Overgaard.
Chief funding officer Steve Gorman adds: "The trust in NAC's business, which has again been shown by a range of investors, may well lead to further issuing in due course."
Clifford Chance acted as counsel for NAC, while Morgan, Lewis & Bockius represented the noteholders.
Source: Cirium Dashboard