Air Lease Corporation Announces Pricing of Public Offering of $1.2 Billion of 1.875% Senior Unsecured Medium-Term Notes

Rhea-AI Summary

Air Lease Corporation (NYSE: AL) announced a public offering of $1.2 billion of 1.875% senior unsecured medium-term notes due August 15, 2026. The offering is set to close on May 24, 2021, pending customary conditions. The notes will yield 1.875% interest, payable semi-annually starting February 15, 2022. Proceeds will be used for general corporate purposes, including aircraft purchases and debt repayment. The notes are offered under the company's SEC shelf registration statement filed on May 7, 2021.

Positive

• Proceeds of $1.2 billion will support strategic growth through aircraft purchases and debt repayment.
• Notes have a competitive interest rate of 1.875%, enhancing financial flexibility.

Negative

• Potential dilution of existing shareholders due to new debt issuance.
• Forward-looking statements indicate risks, including unexpected delays in the closing process.

Air Lease Corporation (NYSE: AL) (the “Company”) announced the pricing on May 17, 2021 of its public offering of $1.2 billion aggregate principal amount of 1.875% senior unsecured medium-term notes due August 15, 2026 (the “Notes”). The sale of the Notes is expected to close on May 24, 2021, subject to satisfaction of customary closing conditions.

The Notes will mature on August 15, 2026 and will bear interest at a rate of 1.875% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 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.

BMO Capital Markets Corp., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Truist Securities, Inc. 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) BMO Capital Markets Corp. toll-free at 1-866-864-7760, (ii) J.P. Morgan Securities LLC collect at (212) 834-4533, (iii) Mizuho Securities USA LLC toll-free at 1 (866) 271-7403 or (iv) Truist Securities, Inc. toll-free at (800) 685-4786.

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 is the amount and interest rate of the new notes issued by Air Lease Corporation (AL)?

Air Lease Corporation announced the issuance of $1.2 billion in senior unsecured notes with an interest rate of 1.875%.

When will the offering of the notes by Air Lease Corporation (AL) close?

The offering is expected to close on May 24, 2021, pending customary closing conditions.

What will Air Lease Corporation (AL) use the proceeds from the notes for?

The proceeds will be used for general corporate purposes, including purchasing aircraft and repaying existing debt.

What are the key dates related to the new notes issued by Air Lease Corporation (AL)?

The notes will mature on August 15, 2026, and interest will be paid semi-annually starting February 15, 2022.