Macquarie Airfinance has priced a dual tranche notes private offering.

The lessor priced $500 million aggregate principal amount of its 6.4% senior notes due 2029 and $500 million aggregate principal amount of its 6.5% senior notes due 2031.

Data from Finsight shows four banks BNP Paribas, Citigroup, JP Morgan Securities and Mizuho Securities are acting as joint bookrunners in the issuances.

Initial pricing talk on the five-year tranche was US treasury +250 basis points (bps) and the transaction launched at benchmark 210 bps over. The Initial pricing talk on the five-year tranche was US treasury +262.5 bps and the second tranche launched at benchmark 230 bps over.

The notes will be jointly and severally guaranteed by each of the company’s direct and indirect subsidiaries, other than the servicing entities of the Macquarie Airfinance group and each secured group subsidiary as defined under the company’s existing unsecured credit facility.

Macquarie Airfinance plans to use the net proceeds from the sale  to prepay a portion of the outstanding principal amount of the company’s existing secured debt.

The notes are expected to be issued on 26 March 2024, subject to customary closing conditions. 

Moody’s Ratings has assigned a Baa3 (stable) issuer rating to Macquarie Airfinance and has also assigned a Baa3 (stable) senior unsecured rating to the notes. S&P revised their outlook on the company to positive from stable and affirmed Macquarie Airfinance’s BB+ rating.