AerCap Holdings N.V. has priced a $1.5 billion senior notes offering through its wholly owned subsidiary, AerCap Funding Designated Activity Company. The offering comprises $750 million of 5.500% senior notes due 2030 and $750 million of 5.875% senior notes due 2033.
The notes will be fully and unconditionally guaranteed on a senior unsecured basis by AerCap and certain of its subsidiaries. The transaction provides the aircraft lessor with additional funding capacity for its broader corporate and fleet-related financing requirements.
AerCap said it intends to use the net proceeds for general corporate purposes, including acquiring, investing in, financing or refinancing aircraft assets, as well as repaying existing indebtedness.
For the aviation aftermarket, aircraft financing activity can influence fleet renewal and asset-management decisions, including the deployment, transition and continued support of aircraft throughout their operating lives. AerCap’s use of proceeds therefore links the financing transaction to its wider aircraft portfolio strategy, although the company has not identified specific aircraft acquisitions or MRO programmes tied to the proceeds.
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The 2030 and 2033 notes were issued by AerCap Funding Designated Activity Company and will carry the guarantees described in the offering documentation. Citigroup, Mizuho, BNP Paribas, Deutsche Bank Securities, Santander and Truist Securities are serving as joint book-running managers.
AerCap has filed the relevant registration statement and offering documents with the US Securities and Exchange Commission. The financing adds another source of capital for the lessor as it continues to fund aircraft assets and manage its debt maturities.
