Air Lease Corporation Announces Pricing of Public Offering of $750.0 Million of 0.70% Senior Unsecured Medium-Term Notes

Rhea-AI Summary

Air Lease Corporation (NYSE: AL) announced the pricing of its public offering of $750 million in 0.70% senior unsecured medium-term notes, due February 15, 2024. The sale is set to close on January 26, 2021, subject to customary conditions. The notes will bear interest at 0.70% per annum, payable semi-annually starting August 15, 2021. Proceeds will be used for general corporate purposes, including aircraft purchases and debt repayment. The offering is under an effective shelf registration statement with the SEC.

Positive

• Offering generates $750 million for aircraft purchases and debt repayment.
• Interest rate of 0.70% per annum is favorable for financing.

Negative

• Potential dilution of shareholders if the notes affect equity financing.
• Forward-looking statements highlight risks related to delayed closing and cash needs.

Air Lease Corporation (NYSE: AL) (the “Company”) announced the pricing on January 19, 2021 of its public offering of $750.0 million aggregate principal amount of 0.70% senior unsecured medium-term notes due February 15, 2024 (the “Notes”). The sale of the Notes is expected to close on January 26, 2021, subject to satisfaction of customary closing conditions.

The Notes will mature on February 15, 2024 and will bear interest at a rate of 0.70% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2021. 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., Fifth Third Securities, Inc., Santander Investment Securities Inc. and SG Americas 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 10, 2018, as amended by the Post-Effective Amendment No. 1, filed with the SEC on November 20, 2018. The offering of the Notes is being made only by means of the prospectus supplement dated November 20, 2018, supplementing the base prospectus dated November 20, 2018, 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 1 (800) 831-9146, (ii) Fifth Third Securities, Inc. by calling 1 (866) 531-5353, (iii) Santander Investment Securities Inc. toll-free at 1 (855) 403-3636 or (iv) 1 SG Americas Securities, LLC toll-free at 1 (855) 881-2108.

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, 2019 and Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2020.

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FAQ

What are the details of Air Lease Corporation's note offering on January 19, 2021?

Air Lease Corporation announced a public offering of $750 million in 0.70% senior unsecured medium-term notes due February 15, 2024, with a closing date expected on January 26, 2021.

What is the interest rate and payment schedule for the notes issued by AL?

The notes will bear an interest rate of 0.70% per annum, payable semi-annually on February 15 and August 15, starting August 15, 2021.

How will Air Lease Corporation use the proceeds from the note offering?

The proceeds are intended for general corporate purposes, including purchasing commercial aircraft and repaying existing debt.

What risks are associated with Air Lease Corporation's note offering?

Risks include potential delays in closing and unexpected cash needs, which could affect the company's financial flexibility.