SMBC Aviation Capital closes $500 million senior unsecured notes offering

Dublin, July 31, 2018: SMBC Aviation Capital, one of the world’s leading aircraft leasing companies, today announced that its wholly-owned subsidiary, SMBC Aviation Capital Finance DAC, has closed the sale of $500 million principal amount of 4.125%, 5-year senior unsecured notes due July 2023 (the “Notes”). The Notes are fully and unconditionally guaranteed by SMBC Aviation Capital.

This successful bond placement - priced at US Treasuries plus 133 basis points - follows SMBC Aviation Capital’s capital markets issuances in 2016 and 2017 and means the company has now raised $1.5 billion in the bond markets since the commencement of the program. The proceeds from the offering will be used for general corporate purposes which may include, among other things, the purchase of aircraft and the repayment of existing indebtedness.

Commenting on the issuance, Barry Flannery, Chief Financial Officer of SMBC Aviation Capital, said: “The successful execution of this transaction demonstrates the market’s confidence in our business and our commitment to diversifying our sources of funding. Our bond programme is the foundation of our third-party funding strategy and, together with our ongoing shareholder support, means we have the flexibility to access multiple and diverse funding channels in all market conditions, a key strategic focus for the business”.

In April 2018, SMBC Aviation Capital successfully raised USD $600m through a syndicated financing transaction.