ACG to issue $1bn in unsecured notes | News | Airfinance Journal

ACG to issue $1bn in unsecured notes

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Aviation Capital Group (ACG) intends to raise $1 billion through an unsecured notes issuance.

The notes carry a 5.5% interest rate and are due in 2024.

J.P Morgan, CA-CIB, Credit Suisse, Societe Generale-CIB and Wells Fargo are active jointbokrunners in the transaction.

ACG intends to use the proceeds for general corporate purposes, which may include the purchase of aircraft and repayment of existing debt.

Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured rating of A- with a negative outlook to the issue.

KBRA previously affirmed ACG’s issuer rating and a senior unsecured debt rating of A- on 27 March 2020 and changed the outlook from stable to negative.

The notes will be ACG’s senior unsecured general obligations and will rank equally in right of payment with its existing and future senior unsecured indebtedness, KRBA stated.

The notes will rank senior in right of payment to any future subordinated unsecured indebtedness and will be effectively subordinated to its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness.

The notes will be structurally subordinated to all existing and future indebtedness and other liabilities of its subsidiaries.

In June, ACG closed a $600 million unsecured revolving line of credit with its 100% owner, Tokyo Century.

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