AerCap Holdings N.V. Announces Pricing of $750 Million Aggregate Principal Amount of Fixed-Rate Reset Junior Subordinated Notes

Rhea-AI Summary

AerCap Holdings N.V. announced the pricing of $750 million aggregate principal amount of Fixed-Rate Reset Junior Subordinated Notes due 2055, with an initial interest rate of 6.950% per annum.

The interest rate will reset every five years starting March 10, 2030, based on the five-year U.S. Treasury rate plus a 2.720% spread. The Notes will be guaranteed on an unsecured junior subordinated basis by AerCap and certain subsidiaries.

Proceeds from the Notes may be used for general corporate purposes, including potentially redeeming the company's outstanding Fixed-Rate Reset Junior Subordinated Notes due 2079 on October 10, 2024. J.P. Morgan, Mizuho, Goldman Sachs & Co. , and Santander are the joint book-running managers for the offering. The company has filed a registration statement with the SEC for this offering.

Positive

• Pricing of $750 million Fixed-Rate Reset Junior Subordinated Notes with an initial interest rate of 6.950% per annum.
• Interest rate reset every five years starting March 10, 2030, based on five-year U.S. Treasury rate plus 2.720%.
• Proceeds may be used for general corporate purposes, including potential redemption of 2079 Junior Subordinated Notes.

Negative

• Issuance of additional debt may increase the company's leverage.

News Market Reaction

+0.89%

1 alert

+0.89% News Effect

On the day this news was published, AER gained 0.89%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

DUBLIN, July 8, 2024 /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 $750 million aggregate principal amount of the Issuers' Fixed-Rate Reset Junior Subordinated Notes due 2055 (the "Notes"). The Notes will be issued with an initial interest rate of 6.950% per annum, to be reset on March 10, 2030 and every five years thereafter based on the then-prevailing five-year U.S. Treasury rate plus a spread of 2.720%. The Notes will be fully and unconditionally guaranteed on an unsecured junior subordinated 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, which may include the redemption of all or a portion of the Company's outstanding Fixed-Rate Reset Junior Subordinated Notes due 2079 (the "2079 Junior Subordinated Notes") on October 10, 2024, which is the first call date in respect of such notes. The information contained in this press release does not constitute a notice of redemption for the 2079 Junior Subordinated Notes.

J.P. Morgan, Mizuho, Goldman Sachs & Co. LLC and Santander 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 19, 2021. Investors should read the accompanying prospectus dated October 19, 2021, the preliminary prospectus supplement relating to the offering dated July 8, 2024, 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: J.P. Morgan Securities LLC, Attn: Investment Grade Syndicate Desk, 383 Madison Avenue, New York, New York 10179, by facsimile at 212-834-6081; Mizuho Securities USA LLC, Attn: Debt Capital Markets, 1271 Avenue of the Americas, New York, New York 10020, or by calling toll-free at 1-866-271-7403; Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, New York 10282, by telephone at 1-866-471-2526, by facsimile at 212-902-9316, or by emailing prospectus-ny@ny.email.gs.com; or Santander US Capital Markets LLC, 437 Madison Avenue, New York, New York 10022, by telephone at 1-855-403-3636, or by email at DCMAmericas@santander.us.

This press release shall not constitute an offer to sell or purchase or the solicitation of an offer to sell or purchase the Notes, the 2079 Junior Subordinated 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, Miami, Singapore, Amsterdam, Shanghai, Dubai, Seattle, Toulouse 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 current hostilities in the Middle East, or any escalation thereof, on the aviation industry or our business; 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 interest rate for AerCap's new subordinated notes?

The initial interest rate for AerCap's new Fixed-Rate Reset Junior Subordinated Notes is 6.950% per annum.

When will the interest rate of AerCap's new notes reset?

The interest rate will reset on March 10, 2030, and every five years thereafter.

What is the maturity date for AerCap's new subordinated notes?

The maturity date for the new Fixed-Rate Reset Junior Subordinated Notes is in 2055.

How much is AerCap raising through the new note issuance?

AerCap is raising $750 million through the issuance of the new Fixed-Rate Reset Junior Subordinated Notes.

What might AerCap use the proceeds from the new notes for?

The proceeds may be used for general corporate purposes, including potentially redeeming the company's outstanding 2079 Junior Subordinated Notes.