Sky Money
Air Lease Raises $700 Million
- Air Lease Corp. priced a $700 million senior unsecured issue with an interest rate of 5.85 percent last week. The medium-term notes are due in December 2027. ALC will use the proceeds for general corporate purposes, including purchasing aircraft and repaying debt. Bank of America Securities, J.P. Morgan Securities, SG Americas Securities, and Truist Securities are joint book-running managers of the transaction that is scheduled to close on December 5.
- Delta and Spirit have separately amended the terms on some of their revolving credit facilities. Delta extended the maturity of its $1.325 billion facility from J.P. Morgan by two years to April 2025; the maturity on its $1.25 billion standby letter of credit facility remains unchanged in 2024. And Spirit increased the commitment under its facility from Citi by $190 million to $300 million. Both airlines also changed the base rate the facilities are priced over to the secured overnight financing rate, or SOFR, from Libor.
- Norse Atlantic has raised roughly $30 million from a private placement of 120 million new shares. Proceeds from the deal will be used to maintain its required cash buffer after a regulator-mandated investment of $46 million in its UK subsidiary. And, following the success of the sale, the airline hopes to sell another 60 million shares at 2.5 Norwegian kroner ($0.25) each in a follow on private sale. Pareto Securities and SpareBank 1 Markets were managers of the transaction.