AIG's ILFC Raises $650 Million through Long-term Notes Offering

Strategic Insights -

AIG's International Lease Finance Corporation (ILFC) has successfully raised $650 million through an offering of long-term notes. The unsecured notes have a coupon rate of 8.625% and are scheduled to mature on January 15, 2022. The offering comes at a time when ILFC is looking to repay some of its debt and execute on pending aircraft purchases. This move is seen as a strategic step towards minimizing ILFC's fleet portfolio, building a strong liquidity profile, and ultimately reducing the company's debt leverage.

Key Takeaways:

  • ILFC has raised $650 million through the issuance of long-term notes, which will be used to repay some of its debt and execute on pending aircraft purchases.
  • The notes have a coupon rate of 8.625% and are scheduled to mature on January 15, 2022.
  • Rating agencies Moody's and S&P have rated the notes "B1" and "BBB-" respectively.
  • ILFC has appointed several banks, including Citigroup, Goldman Sachs, and Morgan Stanley, as joint book-running managers for the sale.
  • The company expects to use the net proceeds from the notes offering to repay some of its debt and execute on its business operations.
  • ILFC has secured a $1.3 billion term loan in April this year, which will be funded over the next 12 months and is set to mature in 2018.
  • The company has also secured the right to increase its term loan commitment by $200 million from additional lenders.

Statistics:

  • $650 million: The amount raised through the issuance of long-term notes.
  • 8.625%: The coupon rate of the notes.
  • January 15, 2022: The maturity date of the notes.
  • $1.3 billion: The amount of the term loan secured by ILFC in April this year.
  • $200 million: The amount by which ILFC can increase its term loan commitment from additional lenders.

Sources:

  • Zacks.com via COMTEX
  • Moody's Investors Service
  • Standards & Poor's (S&P)
  • Citigroup Inc.
  • Goldman Sachs Group Inc.
  • Morgan Stanley
  • Bank of America Corp.
  • JP Morgan Chase & Co.
  • Deutsche Bank AG
  • Barclays plc
  • UBS AG