AerCap Holdings N.V. Unveils $500 Million Subordinated Note Offering
AerCap Holdings N.V. Announces Significant Financial Offering
AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust, both wholly-owned subsidiaries of AerCap Holdings N.V. ("AerCap" or the "Company"), have recently priced an impressive offering of $500 million in aggregate principal amount of Fixed-Rate Reset Junior Subordinated Notes due in 2056 (referred to as the "Notes"). These notes are being issued at an initial interest rate of 6.500% per annum and will undergo adjustment every five years beginning January 31, 2031, reflecting the five-year U.S. Treasury rate, plus a spread of 2.441%. The Company will guarantee these notes on an unsecured junior subordinated basis.
Net Proceeds and Corporate Strategy
The proceeds from this offering are set to be utilized for general corporate purposes. This may include the strategic decision to redeem a portion or all of AerCap Global Aviation Trust's outstanding Fixed-to-Floating Rate Junior Subordinated Notes due in 2045, with the first opportunity for such redemption occurring in approximately a year, specifically on June 16, 2025. It's noteworthy that this announcement does not constitute a formal notice for the redemption of the 2045 Junior Subordinated Notes.
Management of the Offering
For this underwritten public offering, Mizuho, BofA Securities, MUFG, and Truist Securities are acting as the joint book-running managers, demonstrating strong industry backing for this financial endeavor. Their involvement highlights confidence in the company's future and its sound financial strategies.
Registration and Investor Information
AerCap has filed a registration statement on Form F-3, which includes a prospectus with the U.S. Securities and Exchange Commission ("SEC") for this offering. This registration automatically became effective upon its submission on October 18, 2024. Investors interested in a deeper understanding of the offering are encouraged to review the accompanying documents for full details about AerCap and the financial model surrounding this offering.
About AerCap
As a top-tier entity in the aviation leasing landscape, AerCap prides itself on maintaining one of the industry's most attractive order books. The company serves nearly 300 customers globally, offering a broad range of fleet solutions tailored to the needs of its clientele. With its operational headquarters located in Dublin and various branch offices around the world—such as in Shannon, Miami, Singapore, Memphis, Amsterdam, Shanghai, and Dubai—AerCap continues to lead in aviation leasing and asset management.
Frequently Asked Questions
What are the Fixed-Rate Reset Junior Subordinated Notes?
The Fixed-Rate Reset Junior Subordinated Notes are a type of debt security issued by AerCap, featuring an initial fixed interest rate that will reset based on market conditions every five years.
How will AerCap use the proceeds from the notes?
Proceeds are intended for general corporate purposes, including the potential redemption of certain outstanding junior subordinated notes.
Who is managing the offering of these notes?
Mizuho, BofA Securities, MUFG, and Truist Securities are the joint book-running managers overseeing this offering.
What is AerCap's position in the aviation industry?
AerCap is recognized as a global leader in aviation leasing, servicing a wide array of customers with a comprehensive suite of fleet solutions.
Where is AerCap headquartered?
AerCap is headquartered in Dublin, with offices across various international locations, amplifying its global reach.
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