Air Lease Corporation Announces Pricing of Public Offering of $1.1 Billion of Senior Unsecured Medium-Term Notes

Rhea-AI Summary

Air Lease Corporation (NYSE: AL) has priced two public offerings totaling $1.1 billion: $600 million in 0.80% senior unsecured medium-term notes due August 18, 2024, and $500 million in 2.10% senior unsecured medium-term notes due September 1, 2028. The offerings, set to close on August 18, 2021, will support general corporate purposes, including aircraft purchases and debt repayment. Interest for the 2024 Notes is 0.80% per annum, while the 2028 Notes bear 2.10%, payable semi-annually starting in 2022.

Positive

• The $1.1 billion in offerings will support aircraft purchases and debt repayment.
• The interest rates of 0.80% and 2.10% are relatively low, potentially improving cash flow.

Negative

• The issuance of new debt could lead to shareholder dilution.
• The ongoing cash needs and risks associated with closing the offerings may impact future performance.

Air Lease Corporation (NYSE: AL) (the “Company”) announced the pricing on August 11, 2021 of its public offering of $600.0 million aggregate principal amount of 0.80% senior unsecured medium-term notes due August 18, 2024 (the “2024 Notes”) and $500.0 million aggregate principal amount of 2.10% senior unsecured medium-term notes due September 1, 2028 (the “2028 Notes” and, together with the 2024 Notes, the “Notes”). The sale of the Notes is expected to close on August 18, 2021, subject to satisfaction of customary closing conditions.

The 2024 Notes will mature on August 18, 2024 and will bear interest at a rate of 0.80% per annum, payable semi-annually in arrears on February 18 and August 18 of each year, commencing on February 18, 2022. The 2028 Notes will mature on September 1, 2028 and will bear interest at a rate of 2.10% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2022.

The Company intends to use the net proceeds of the offering for general corporate purposes, which may include, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC, and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering of the Notes.

The Notes are being offered pursuant to the Company’s effective shelf registration statement, previously filed with the Securities and Exchange Commission (the “SEC”) on May 7, 2021. The offering of the Notes is being made only by means of the prospectus supplement dated May 7, 2021, supplementing the base prospectus dated May 7, 2021, as may be further supplemented by any free writing prospectus and/or pricing supplements the Company may file with the SEC. Before you invest, you should read the base prospectus, prospectus supplement and any other documents the Company may file with the SEC for more complete information about the Company and this offering. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies may be obtained from: (i) Citigroup Global Markets Inc. toll-free at (800) 831-9146, (ii) J.P. Morgan Securities LLC collect at (212) 834-4533, (iii) TD Securities (USA) LLC toll-free at (855) 495-9846 or (iv) Wells Fargo Securities, LLC toll-free at (800) 645-3751.

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the expected closing of the offering and the intended use of proceeds. Such statements are based on current expectations and projections about the Company’s future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including but not limited to, unexpected delays in the closing process for the Notes, unanticipated cash needs, and those risks detailed in the Company’s filings with the SEC, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

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FAQ

What are the details of Air Lease Corporation's recent offering?

Air Lease Corporation priced $600 million in 0.80% senior unsecured notes due August 2024 and $500 million in 2.10% notes due September 2028, totaling $1.1 billion.

When will the offerings close for Air Lease Corporation?

The offerings are expected to close on August 18, 2021.

How will Air Lease Corporation use the proceeds from the offerings?

The proceeds will be used for general corporate purposes, including the purchase of aircraft and repayment of existing debt.

What are the interest rates for the new notes issued by Air Lease Corporation?

The 2024 Notes will bear interest at 0.80%, and the 2028 Notes will bear interest at 2.10%.

What risks are associated with the recent notes offering from Air Lease Corporation?

Risks include potential delays in closing the offerings and unexpected cash needs that could affect future performance.