NORDIC AVIATION CAPITAL has successfully completed the largest ever Senior Unsecured Private Placement issued by an aircraft lessor

Nordic Aviation Capital (NAC) is pleased to confirm that it has successfully completed its third Senior Unsecured Private Placement issuance. The issuance, rated BBB by Kroll Bond Rating Agency, was launched at USD250 million and was substantially oversubscribed allowing NAC to source a total of USD786.25 million. This is believed to be the largest US private placement by an aircraft leasing company. The new transaction consists of five and seven year tranches, with the proceeds being used to refinance aircraft within our portfolio. They will rank pari passu with all other unsecured indebtedness of the issuer, a wholly- owned subsidiary of NAC.

This private placement issuance is a landmark transaction for the 29-year-old company and a further significant step in migrating to unsecured financing. “We are very pleased with our new issue and the amount of support we receive from both new and existing investors. Unsecured funding improves our operational flexibility and supports our position as the largest regional aircraft lessor,” says CEO Søren M. Overgaard.

“There is no doubt that the US Private Placement market with this record USD786 million transaction again demonstrates important value to NAC and great support to NAC’s business model and funding strategy. The trust in NAC’s business which has again been shown by a range of investors may well lead to further issuing in due course,” adds Steve Gorman Chief Funding Officer.

The issue was arranged by Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and RBC Capital Markets, LLC
Clifford Chance LLP acted as counsel for NAC while Morgan, Lewis & Bockius LLP acted as counsel for the Note Holders