Aircraft leasing giant AerCap planned on issuing $1bn of bonds paying a coupon of 3.95% due February 2022.
The company, which operates 1,670 managed or on-order aircrafts in its portfolio and almost $44bn (€39bn) of assets, planned to use proceeds from the bond sale to buy or refinance aircraft assets and repay some of its existing high-cost debt.
Last week, New York-listed the aircraft lessor reported its 1Q’16 adjusted net profit of $301m, which was virtually unchanged from the same period in 2015.
The company spent more than $300m in buying back its own shares in the market between January and 9 May 2016. It had $29.8bn of debt on its balance sheet at the end of March 2016.
Separately, Standard & Poor assigned a “BBB-” rating on the new unsecured bonds AerCap was issuing, with a stable outlook.
Moody’s rates the issuance at Ba1 and Fitch rated the debt at BB+.
Joint bookrunners for the deal were Barclay’s Capital, Mizuho Securities, RBC Capital and Wells Fargo.
Lead managers for the issuance were HSBC, BNP Paribas, Bank of America, Citigroup, Credit Agricole CIB, Deutsche Bank, Fifth Third, Goldman Sachs, JP Morgan, Morgan Stanley and SunTrust Robinson Humphrey.
Co-managers were ING and Scotiabank.