Dubai Aerospace Enterprise plans to redeem $500mln of senior notes

The redemption date is set for March 1, 2021

Dubai aerospace. Image courtesy Dubai Media Office Twitter handle.

Dubai aerospace. Image courtesy Dubai Media Office Twitter handle.

Dubai Aerospace Enterprise (DAE), one of the world’s biggest aircraft leasing companies, said on Monday that it will redeem its 5.75 percent $500 million (1. 8 billion dirhams) senior notes due on 2023.

The redemption date is set for March 1, 2021. The outstanding principal amount as of the date of the redemption notice was about $456.1 million.

Senior notes are debts that the company must repay before most other debts. Wells Fargo Bank is the trustee and paying agent for the notes.

DAE, owned by the Investment Corporation of Dubai, said the notes will be redeemed in accordance with the terms and conditions of the applicable indenture at a redemption price equal to 102.875 percent of the principal amount plus accrued and unpaid interest.

Reuters reported last month that DAE is looking to sell benchmark bonds with maturities of four and/or seven years.

The company serves over 170 airline customers in over 65 countries.

(Reporting by Brinda Darasha; editing by Daniel Luiz)

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© ZAWYA 2021

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