AerCap Holdings N.V. Announces Pricing of $1.5 Billion Aggregate Principal Amount of Senior Notes

Rhea-AI Summary

AerCap Holdings N.V. announced the pricing of $1.5 billion in senior notes through its subsidiaries AerCap Ireland Capital and AerCap Global Aviation Trust. The offering consists of $750 million of 4.875% Senior Notes due 2028 and $750 million of 5.375% Senior Notes due 2031.

The notes will be fully guaranteed on a senior unsecured basis by AerCap and certain subsidiaries. The net proceeds will be used for general corporate purposes, including aircraft asset acquisition, investment, financing, and debt repayment.

The offering is being managed by joint book-running managers Citigroup, Deutsche Bank Securities, Barclays, Credit Agricole CIB, and TD Securities. The company filed a registration statement with the SEC that became effective on October 18, 2024.

Positive

• Successful raising of $1.5 billion through senior notes offering
• Strategic debt structuring with staggered maturities (2028 and 2031)
• Strong banking syndicate supporting the offering

Negative

• Increase in corporate debt levels
• Higher interest rates compared to historical standards (4.875% and 5.375%)

Insights

Fixed Income Analyst

This $1.5 billion senior notes offering by AerCap represents a strategic debt structuring move, split between $750 million in 2028 notes at 4.875% and $750 million in 2031 notes at 5.375%. The pricing spread between the two tranches reflects a typical term premium and appears competitive in the current rate environment. The dual-tranche approach helps diversify maturity exposure while capturing different points on the yield curve.

The involvement of top-tier financial institutions as joint book-runners indicates strong market confidence. The fully guaranteed structure by AerCap and its subsidiaries enhances the notes' creditworthiness. The flexible use of proceeds for aircraft assets and debt refinancing provides valuable operational and financial optionality, particularly important in the capital-intensive aircraft leasing industry where timing of aircraft acquisitions and refinancing opportunities is crucial.

Aviation Finance Specialist

This debt offering strengthens AerCap's liquidity position at a critical time in the aviation market cycle. With aircraft values and lease rates showing strong recovery post-pandemic, the ability to deploy $1.5 billion towards aircraft assets positions AerCap to capitalize on market opportunities. The notes' structure, with maturities in 2028 and 2031, aligns well with typical aircraft lease durations and asset depreciation schedules.

The pricing achieved indicates robust investor appetite for aircraft leasing exposure, particularly from a market leader like AerCap. For context, aircraft lessors typically maintain significant debt levels due to the capital-intensive nature of the business, making efficient debt structuring important for profitability. This offering should support AerCap's fleet renewal and growth strategy while maintaining a balanced debt maturity profile.

DUBLIN, Jan. 6, 2025 /PRNewswire/ -- AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust (together, the "Issuers"), each a wholly-owned subsidiary of AerCap Holdings N.V. ("AerCap" or the "Company"), priced an offering of senior notes, consisting of $750 million aggregate principal amount of the Issuers' 4.875% Senior Notes due 2028 (the "2028 Notes") and $750 million aggregate principal amount of the Issuers' 5.375% Senior Notes due 2031 (the "2031 Notes" and, together with the 2028 Notes, the "Notes"). The Notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company and certain other subsidiaries of the Company.

The Issuers intend to use the net proceeds from the Notes for general corporate purposes, including to acquire, invest in, finance or refinance aircraft assets and to repay indebtedness.

Citigroup, Deutsche Bank Securities, Barclays, Credit Agricole CIB and TD Securities are serving as joint book-running managers for the underwritten public offering.

The Company has filed a registration statement (including a prospectus) on Form F-3 with the U.S. Securities and Exchange Commission (the "SEC") for the underwritten offering to which this communication relates. The registration statement automatically became effective upon filing on October 18, 2024. Investors should read the accompanying prospectus dated October 18, 2024, the preliminary prospectus supplement relating to the offering dated January 6, 2025, and other documents the Company has filed with the SEC for more complete information about the Company and this offering.

These documents may be obtained for free by visiting EDGAR on the SEC's website at www.sec.gov. The prospectus supplement and accompanying prospectus relating to this offering may also be obtained from: Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-800-831-9146 or by email at prospectus@citi.com; Deutsche Bank Securities Inc., 1 Columbus Circle, New York, NY 10019, Attn: Prospectus Group, by telephone at 1-800-503-4611 or by email at prospectus.CPDG@db.com; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 1-888-603-5847 or by email at barclaysprospectus@broadridge.com; Credit Agricole Securities (USA) Inc., 1301 Avenue of the Americas, New York, NY 10019, Attn: Debt Capital Markets, by telephone at 1-866-807-6030; or TD Securities (USA) LLC, 1 Vanderbilt Avenue, 11th Floor, New York, NY 10017, Attn: DCM-Transaction Advisory, by telephone at 1-855-495-9846.

This press release shall not constitute an offer to sell or purchase or the solicitation of an offer to sell or purchase the Notes or any other securities, nor shall there be any offer, solicitation, purchase or sale of these securities in any state or jurisdiction in which such offer, solicitation, purchase or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About AerCap

AerCap is the global leader in aviation leasing with one of the most attractive order books in the industry. AerCap serves approximately 300 customers around the world with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and is based in Dublin with offices in Shannon, Miami, Singapore, Memphis, Amsterdam, Shanghai, Dubai and other locations.

Forward-Looking Statements

This press release contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements". In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "might," "should," "expect," "plan," "intend," "will," "aim," "estimate," "anticipate," "believe," "predict," "potential" or "continue" or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this press release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements, including but not limited to the availability of capital to us and to our customers and changes in interest rates; the ability of our lessees and potential lessees to make lease payments to us; our ability to successfully negotiate flight equipment (which includes aircraft, engines and helicopters) purchases, sales and leases, to collect outstanding amounts due and to repossess flight equipment under defaulted leases, and to control costs and expenses; changes in the overall demand for commercial aviation leasing and aviation asset management services; the continued impacts of the Ukraine Conflict, including the resulting sanctions by the United States, the European Union, the United Kingdom and other countries, on our business and results of operations, financial condition and cash flows; the effects of terrorist attacks on the aviation industry and on our operations; the economic condition of the global airline and cargo industry and economic and political conditions; the impact of current hostilities in the Middle East, or any escalation thereof, on the aviation industry or our business; development of increased government regulation, including travel restrictions, sanctions, regulation of trade and the imposition of import and export controls, tariffs and other trade barriers; a downgrade in any of our credit ratings; competitive pressures within the industry; regulatory changes affecting commercial flight equipment operators, flight equipment maintenance, engine standards, accounting standards and taxes; and disruptions and security breaches affecting our information systems or the information systems of our third-party providers.

As a result, we cannot assure you that the forward-looking statements included in this press release will prove to be accurate or correct. These and other important factors and risks are discussed in AerCap's annual report on Form 20-F and other filings with the SEC. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this press release might not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except as required by applicable law, we do not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/aercap-holdings-nv-announces-pricing-of-1-5-billion-aggregate-principal-amount-of-senior-notes-302343493.html

SOURCE AerCap Holdings N.V.

FAQ

What is the total value of AerCap's January 2025 senior notes offering?

AerCap's January 2025 senior notes offering totals $1.5 billion, split equally between 2028 and 2031 notes.

What are the interest rates for AER's 2028 and 2031 senior notes?

The 2028 notes carry a 4.875% interest rate, while the 2031 notes have a 5.375% interest rate.

How will AerCap (AER) use the proceeds from the 2025 notes offering?

AerCap will use the proceeds for general corporate purposes, including aircraft asset acquisition, investment, financing, and debt repayment.

Which banks are managing AER's January 2025 senior notes offering?

The offering is managed by Citigroup, Deutsche Bank Securities, Barclays, Credit Agricole CIB, and TD Securities as joint book-running managers.

When did AER's registration statement for this offering become effective?

AerCap's registration statement became effective on October 18, 2024.