Operating lessor Aercap has priced a $1.25 billion senior notes offering at 6.5% that is due in 2025.
Citigroup Global Markets, Deutsche Bank Securities, HSBC Securities, Mizuho Securities and Morgan Stanley are serving as joint book-running managers for the underwritten public offering.
Credit Agricole Securities, Goldman Sachs & Co, MUFG Securities Americas,SG Americas Securities and TD Securities (USA) are passive joint bookrunners. Citizens Capital Markets, Fifth Third Securities and Scotia Capital are co-managers.
The move follows the rescheduling of 37 new aircraft deliveries that were previously expected to be handed over during the coming two years. Aercap also warns more of more deferrals head.
Analysts at Stephens believe that the lessor’s decision to delay the delivery of these assets will increase Aercap’s “liquidity endurance” by another year.
The lessor says the aircraft which were due to be delivered in 2021 and 2022 have been deferred to 2023 and “later years”.
Aercap has now rescheduled the delivery of over 100 aircraft that were originally planned to be delivered between 2020 and 2022.
Theses deferrals have reduced cash capital expenditures in 2020 and 2021 by approximately $4.7 billion.
The lessor currently expects capital expenditures of approximately $1.1 billion for the remainder of this year and approximately $2.5 billion in 2021.
All of the aircraft delivering in 2020 and 2021 are already committed under operating lease placements, says the lessor.
Chief executive officer Aengus Kelly said the deferrals will help to better align Aercap’s delivery schedule during the period of “market dislocation” created by the Covid-19 crisis.
"We expect to reschedule additional aircraft deliveries in the future as we continue to work with our customers and the manufacturers,” he adds.
Aercap had 342 aircraft on order as of 31 March 2020.
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