It's Revolver Amendment Season
- Aircastle has beefed up its $1 billion revolving credit facility. The lessor added two banks to the 10 backing the facility, and extended the maturity by three years to 2025. Aircastle can draw on the facility as needed.
- Tis the season for modifying revolvers. Air Lease Corp. has upsized its unsecured revolving credit facility by $200 million to $6.4 billion, and extended the maturity by two years to May 2025. Pricing remains 105bps over Libor with a 20bps facility fee. More than 50 lenders participate in the facility that is administered by J.P. Morgan.
- Spirit Airlines launched two fundraising deals with the goal to repay up to $515 million in debt last week. The first is a $440 convertible notes due in 2026 offering that priced at 1 percent, with the net proceeds totaling $428 million. Underwriters Barclays, Morgan Stanley, Citi and Deutsche Bank Securities have the option to purchase up to another $60 million for 30 days. Proceeds will be used to repurchase the $175 million outstanding on its 4.75 percent convertible senior notes due in 2025, and for general corporate purposes.
The second transaction is a common stock offering to holders of the 4.75% convertible senior notes due in 2025. Proceeds from that deal will be used to repurchase up to $340 million of Spirit’s 8% senior secured notes due in 2025, of which the airline had $850 million outstanding at the end of March.