Air Lease Corporation Announces Pricing of Public Offering of $700.0 Million of Senior Unsecured Medium-Term Notes

Rhea-AI Summary

Air Lease Corporation (NYSE: AL) has priced a public offering of $700 million in 5.85% senior unsecured medium-term notes, maturing on December 15, 2027. The offering is set to close on December 5, 2022, pending customary conditions. The notes will pay interest semi-annually, starting June 15, 2023. Proceeds will be used for general corporate purposes, including aircraft purchases and existing debt repayment. Joint book-running managers include BofA Securities and J.P. Morgan Securities.

Positive

• Proceeds of $700 million will fund aircraft purchases and debt repayment, supporting growth and financial stability.
• Interest rate of 5.85% is competitive for medium-term notes.

Negative

• Issuance of new debt may lead to shareholder dilution.
• Dependence on market conditions for successful closing of the offering.

LOS ANGELES--(BUSINESS WIRE)-- Air Lease Corporation (NYSE: AL) (the “Company”) announced the pricing on November 28, 2022 of its public offering of $700.0 million aggregate principal amount of 5.85% senior unsecured medium-term notes due December 15, 2027 (the “Notes”). The sale of the Notes is expected to close on December 5, 2022, subject to satisfaction of customary closing conditions.

The Notes will mature on December 15, 2027 and will bear interest at a rate of 5.85% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing on June 15, 2023.

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.

BofA Securities, Inc., J.P. Morgan Securities LLC, SG Americas Securities, 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) BofA Securities, Inc. toll-free at (800) 294-1322, (ii) J.P. Morgan Securities LLC collect at (212) 834-4533, (iii) SG Americas Securities, LLC at (855) 881-2108 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, 2021 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221128005853/en/

Investors:

Jason Arnold

Vice President, Investor Relations

Phone: +1 310.553.0555

Email: investors@airleasecorp.com

Media:

Laura Woeste

Senior Manager, Media & Investor Relations

Ashley Arnold

Manager, Media & Investor Relations

Phone: +1 310.553.0555

Email: press@airleasecorp.com

Source: Air Lease Corporation

FAQ

What is the amount and terms of Air Lease's recent offering?

Air Lease has priced a public offering of $700 million in senior unsecured notes with a 5.85% interest rate, maturing on December 15, 2027.

When does Air Lease expect the closing of the notes offering?

The closing of the offering is expected on December 5, 2022, subject to customary closing conditions.

How will Air Lease use the proceeds from the notes offering?

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

Who are the joint book-running managers for the offering?

The joint book-running managers include BofA Securities, J.P. Morgan Securities, SG Americas Securities, and Truist Securities.

What are the interest payment dates for the senior unsecured notes?

Interest on the notes will be paid semi-annually on June 15 and December 15, starting on June 15, 2023.