AerCap Holdings N.V. Announces Pricing of $1.2 Billion Aggregate Principal Amount of Senior Notes

Rhea-AI Summary

AerCap Holdings (NYSE:AER) has announced the pricing of a significant $1.2 billion senior notes offering through its subsidiaries. The offering consists of two tranches: $600 million of 4.375% Senior Notes due 2030 and $600 million of 5.000% Senior Notes due 2035.

The notes will be fully guaranteed by AerCap and certain subsidiaries on a senior unsecured basis. The proceeds will be used for general corporate purposes, including aircraft asset acquisition, investment, financing, and debt repayment. Morgan Stanley, Santander, BNP PARIBAS, BMO Capital Markets, ING, and NatWest are serving as joint book-running managers for this underwritten public offering.

Positive

• Successful raising of $1.2 billion in senior notes offering
• Strategic flexibility with proceeds available for aircraft acquisitions and debt refinancing
• Strong banking syndicate supporting the offering with six major financial institutions

Negative

• Additional long-term debt obligations with maturities extending to 2035
• Increased interest expense with rates of 4.375% and 5.000% on the notes

Insights

Fixed Income & Capital Markets Analyst

AerCap's $1.2B dual-tranche bond offering strengthens liquidity while refinancing debt at competitive rates despite rising interest environment.

AerCap has successfully priced a $1.2 billion senior notes offering, split evenly between $600 million in 5-year notes at 4.375% and $600 million in 10-year notes at 5.000%. This dual-tranche approach demonstrates sophisticated capital markets strategy, securing medium and longer-term funding simultaneously while managing duration risk. The pricing reflects AerCap's strong credit profile as the world's largest aircraft leasing company, securing rates that appear competitive in the current elevated interest rate environment.

The issuance serves dual strategic purposes: enhancing liquidity for aircraft acquisitions and refinancing existing debt. Aircraft leasing is a capital-intensive business requiring continuous fleet investment, and this offering provides dry powder for opportunistic asset purchases. The timing suggests AerCap is proactively addressing upcoming debt maturities before they become pressing concerns, potentially replacing higher-coupon debt with these new notes.

The heavyweight banking syndicate (Morgan Stanley, Santander, BNP PARIBAS, BMO, ING, and NatWest) indicates strong institutional demand, with the global composition of underwriters reflecting AerCap's international footprint and investor base. This successful bond placement demonstrates continued capital markets access, crucial for AerCap's business model which depends heavily on debt financing to support its $45+ billion aircraft portfolio.

DUBLIN, Sept. 22, 2025 /PRNewswire/ -- AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust (together, the "Issuers"), each a wholly-owned subsidiary of AerCap Holdings N.V. ("AerCap" or the "Company"), priced an offering of senior notes, consisting of $600 million aggregate principal amount of the Issuers' 4.375% Senior Notes due 2030 (the "2030 Notes") and $600 million aggregate principal amount of the Issuers' 5.000% Senior Notes due 2035 (the "2035 Notes" and, together with the 2030 Notes, the "Notes"). The Notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company and certain other subsidiaries of the Company.

The Issuers intend to use the net proceeds from the Notes for general corporate purposes, including to acquire, invest in, finance or refinance aircraft assets and to repay indebtedness.

Morgan Stanley, Santander, BNP PARIBAS, BMO Capital Markets, ING and NatWest are serving as joint book-running managers for the underwritten public offering.

The Company has filed a registration statement (including a prospectus) on Form F-3 with the U.S. Securities and Exchange Commission (the "SEC") for the underwritten offering to which this communication relates. The registration statement automatically became effective upon filing on October 18, 2024. Investors should read the accompanying prospectus dated October 18, 2024, the preliminary prospectus supplement relating to the offering dated September 22, 2025, and other documents the Company has filed with the SEC for more complete information about the Company and this offering.

These documents may be obtained for free by visiting EDGAR on the SEC's website at www.sec.gov. The prospectus supplement and accompanying prospectus relating to this offering may also be obtained from: Morgan Stanley & Co. LLC, 1585 Broadway, New York, NY 10036, Attn: Investment Banking Division, by telephone at 1-866-718-1649; Santander US Capital Markets LLC, 437 Madison Avenue, New York, NY 10022, by telephone at 1-855-403-3636, or by email at DCMAmericas@santander.us; BNP Paribas Securities Corp., 787 Seventh Avenue, New York, NY 10019, by telephone at 1-800-854-5674, or by email at DL.US.Debt.Syndicate.Support@us.bnpparibas.com; BMO Capital Markets Corp., 151 West 42nd Street, New York, NY 10036, by telephone at 1-888-200-0266, or by email at bmoprospectus@bmo.com; ING Financial Markets LLC, 1133 Avenue of the Americas, New York, NY 10036, by telephone at 1-877-446-4930; or NatWest Markets Securities Inc., 600 Washington Boulevard, Stamford, CT 06901, by telephone at 1-800-231-5830.

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

About AerCap

AerCap is the global leader in aviation leasing with one of the most attractive order books in the industry. AerCap serves approximately 300 customers around the world with comprehensive fleet solutions. AerCap is listed on the New York Stock Exchange (AER) and is based in Dublin with offices in Shannon, Memphis, Miami, Singapore, London, Dubai, Shanghai, Amsterdam and other locations.

Forward-Looking Statements

This press release contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements". In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "might," "should," "expect," "plan," "intend," "will," "aim," "estimate," "anticipate," "believe," "predict," "potential" or "continue" or the negatives thereof or variations thereon or similar terminology. All statements other than statements of historical fact included in this press release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied in the forward-looking statements, including but not limited to the availability of capital to us and to our customers and changes in interest rates; the ability of our lessees and potential lessees to make lease payments to us; our ability to successfully negotiate flight equipment (which includes aircraft, engines and helicopters) purchases, sales and leases, to collect outstanding amounts due and to repossess flight equipment under defaulted leases, and to control costs and expenses; changes in the overall demand for commercial aviation leasing and aviation asset management services; the continued impacts of the Ukraine Conflict, including the resulting sanctions by the United States, the European Union, the United Kingdom and other countries, on our business and results of operations, financial condition and cash flows; the effects of terrorist attacks on the aviation industry and on our operations; the economic condition of the global airline and cargo industry and economic and political conditions; the impact of hostilities in the Middle East, or any escalation thereof, on the aviation industry or our business; trade tensions, including U.S. tariffs and retaliatory measures by some countries, and the resulting geopolitical uncertainty; development of increased government regulation, including travel restrictions, sanctions, regulation of trade and the imposition of import and export controls, tariffs and other trade barriers; a downgrade in any of our credit ratings; competitive pressures within the industry; regulatory changes affecting commercial flight equipment operators, flight equipment maintenance, engine standards, accounting standards and taxes; and disruptions and security breaches affecting our information systems or the information systems of our third-party providers.

As a result, we cannot assure you that the forward-looking statements included in this press release will prove to be accurate or correct. These and other important factors and risks are discussed in AerCap's annual report on Form 20-F and other filings with the SEC. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this press release might not occur. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and we do not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Except as required by applicable law, we do not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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SOURCE AerCap Holdings N.V.

FAQ

What is the size and structure of AerCap's (AER) September 2025 senior notes offering?

AerCap's offering totals $1.2 billion, split between $600 million of 4.375% Senior Notes due 2030 and $600 million of 5.000% Senior Notes due 2035.

How will AerCap (AER) use the proceeds from its $1.2B notes offering?

The proceeds will be used for general corporate purposes, including acquiring, investing in, financing or refinancing aircraft assets and repaying existing debt.

Which banks are managing AerCap's (AER) 2025 senior notes offering?

The joint book-running managers are Morgan Stanley, Santander, BNP PARIBAS, BMO Capital Markets, ING, and NatWest.

What type of guarantee is provided for AerCap's (AER) 2025 senior notes?

The notes are fully and unconditionally guaranteed on a senior unsecured basis by AerCap Holdings N.V. and certain other subsidiaries.