Dublin, April 15, 2019: 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 3.55%, five-year senior unsecured notes due April 2024 (the “Notes”). The Notes are fully and unconditionally guaranteed by SMBC Aviation Capital.
This successful bond placement - priced at US Treasuries plus 125 basis points. 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. This also follows an announcement in November last year that the company had received an A- rating from S&P (along with its existing A- rating from Fitch) and is now the joint highest rated lessor in the industry.
Commenting on the issuance, Barry Flannery, Chief Financial Officer of SMBC Aviation Capital, said:
“The successful completion and attractive pricing of this transaction is yet another endorsement from the market of SMBC Aviation Capital’s strategy and long-term growth prospects. The pricing achieved proves that our quality portfolio and long track record combined with our strong balance sheet and future prospects are compelling and differentiating factors for us, and this transaction is another significant milestone in the development of our third-party funding plans for the business.”