Air Lease Corp. said that it has issued $120 Million in senior unsecured notes in a private placement to institutional investors as the commercial aircraft leasing company continues to raise money to expand its fleet.
The Los Angeles company, which leases Boeing, Airbus and other jetliners to carriers that include Southwest Airlines, United-Continental Holdings and AeroMexico, said the notes contain a 5 percent coupon for a 5-year term.
“The issuance of these notes sends a strong signal from the investment community about ALC’s stated goal of tapping unsecured financing to fund our future fleet acquisitions,” Chief Financial Officer Jim Clarke said in a statement late Tuesday.
The private placement is the first time the company, which was founded by billionaire Steven Udvar-Hazy and went public in April, has obtained long-term, unsecured financing of this type since the company’s founding last year. Air Lease has a fleet of 46 new and used commercial jet aircraft, and anticipates growing its fleet to about 100 planes by the end of the year.
Shares were down 13 cents, or less than 1 percent, to $24.80 in midday trading on the Nasdaq.
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