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AviLease, the aircraft leasing company wholly owned by Saudi Arabia’s Public Investment Fund (PIF), has priced a $650 million five-year bond after attracting more than $4 billion of orders, including $50 million of JLM participation.
The senior unsecured notes were priced at 99.952 with a fixed coupon of 5.50% and a 5.511% yield, equivalent to a spread of 125bps over US Treasuries. Final pricing tightened by 30bps from IPTs in the T+155bps area. The bond provides semi-annual payments on a 30/360 basis.
AviLease is rated Baa2 (Stable) by Moody’s and BBB (Stable) by Fitch with the notes carrying a similar rating.
BNP Paribas and Mizuho acted as joint global coordinators, joint active bookrunners and joint lead managers on the transaction. They were joined by Credit Agricole CIB, Emirates NBD Capital, HSBC, JP Morgan and Morgan Stanley as active bookrunners. A wide group of passive bookrunners included Bank of China, China Construction Bank (Asia), Citi, DBS, ING, Intesa Sanpaolo, MUFG, Natixis, OCBC and Standard Chartered.
AviLease last raised $850 million via a 4.75% five-year investment-grade bond issued in November, with proceeds earmarked for general corporate purposes.
(Writing by Ahmad Mousa; editing by Bindu Rai)
