Air Lease Corporation Announces Closing of $966.5 Million Unsecured Term Loan Facility

Rhea-AI Summary

Air Lease (NYSE: AL) has successfully closed a new $966.5 million unsecured term loan facility with maturity in December 2027. The loan proceeds will be used for working capital needs and general corporate purposes. The transaction was coordinated by Sumitomo Mitsui Trust Bank and Oversea-Chinese Banking , with additional participation from Bank of China, Bank of East Asia, and Cathay United Bank as Mandated Lead Arrangers and Bookrunners.

According to CFO Gregory B. Willis, this facility provides a diversified financing source and demonstrates the company's strong banking relationships.

Positive

• Secured substantial financing of $966.5 million through unsecured term loan
• Extended debt maturity profile to December 2027
• Diversified funding sources through multiple global banking partners

Negative

• Increases company's debt obligations

Insights

Financial Analyst

The closing of a $966.5 million unsecured term loan facility represents a significant financial development for Air Lease The 4-year facility strengthens ALC's liquidity position and demonstrates strong banking relationships across Asia and Europe. The unsecured nature of the loan is particularly noteworthy, indicating lenders' confidence in ALC's credit quality and business model. This financing provides operational flexibility through its use for working capital and general corporate purposes, which is important in the capital-intensive aircraft leasing industry.

The diverse syndicate of banks, including major Asian financial institutions, shows ALC's ability to access varied funding sources, reducing dependency on any single market. With a market cap of $5.5 billion, this facility represents a substantial addition to ALC's financial resources, enhancing their ability to execute on aircraft purchase commitments and maintain competitive positioning in the global aircraft leasing market.

LOS ANGELES--(BUSINESS WIRE)-- Air Lease Corporation (NYSE: AL) announced today the closing of a new $966.5 million unsecured term loan facility that matures in December 2027. The proceeds of the loan will be used to finance the working capital needs of Air Lease Corporation and its subsidiaries and for general corporate purposes.

Sumitomo Mitsui Trust Bank, Limited, New York Branch and Oversea-Chinese Banking Corporation Limited acted as Joint Global Coordinators. In addition to Sumitomo Mitsui Trust Bank, Limited, New York Branch and Oversea-Chinese Banking Corporation Limited, Bank of China Limited, London Branch, Bank of East Asia Limited, and Cathay United Bank, Singapore Branch acted as Mandated Lead Arrangers and Bookrunners on the transaction.

“We are pleased to announce the successful closing of this $966.5 million unsecured term loan facility supported by a syndicate of global banking partners,” said Gregory B. Willis, Executive Vice President and Chief Financial Officer of Air Lease Corporation. “The transaction provides a diversified source of financing for Air Lease and further reflects the depth of our banking relationships. We thank our lenders for their support.”

About Air Lease Corporation (NYSE: AL)

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. The company routinely posts information that may be important to investors in the “Investors” section of its website at www.airleasecorp.com. Investors and potential investors are encouraged to consult Air Lease Corporation’s website regularly for important information. The information contained on, or that may be accessed through, ALC’s website is not incorporated by reference into, and is not a part of, this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241213503255/en/

Investors:

Jason Arnold

Vice President, Investor Relations

Email: investors@airleasecorp.com

Media:

Ashley Arnold

Senior Manager, Media and Investor Relations

Email: press@airleasecorp.com

Laura Woeste

Senior Manager, Media and Investor Relations

Email: press@airleasecorp.com

Source: Air Lease Corporation

FAQ

What is the size and maturity of Air Lease 's (AL) new term loan facility?

Air Lease 's new unsecured term loan facility is $966.5 million and matures in December 2027.

How will Air Lease (AL) use the proceeds from the $966.5M loan?

The proceeds will be used to finance working capital needs of Air Lease and its subsidiaries, as well as for general corporate purposes.

Which banks coordinated Air Lease 's (AL) new loan facility?

Sumitomo Mitsui Trust Bank and Oversea-Chinese Banking acted as Joint Global Coordinators for the loan facility.

What type of loan facility did Air Lease (AL) secure in December 2023?

Air Lease secured an unsecured term loan facility, meaning it was obtained without pledging any specific collateral.