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Air Lease (NYSE: AL) has announced the pricing of its public offering of 300,000 shares of 6.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D, with a liquidation preference of $1,000.00 per share. The sale is expected to close on September 24, 2024. Dividends will accrue at 6.00% from September 24, 2024 to December 15, 2029, and thereafter at the Five-year U.S. Treasury Rate plus 2.56%, with a minimum rate of 6.00%. The company plans to use the proceeds to redeem its outstanding 6.15% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, and for general corporate purposes, including aircraft purchases and debt repayment.
Air Lease (NYSE: AL) ha annunciato la determinazione del prezzo per la sua offerta pubblica di 300.000 azioni di Azioni Privilegiate Perpetue Non Cumulative a Tasso Fisso Reset del 6,00%, Serie D, con una preferenza di liquidazione di $1.000,00 per azione. Si prevede che la vendita si chiuda il 24 settembre 2024. I dividendi accumuleranno al 6,00% dal 24 settembre 2024 al 15 dicembre 2029, e successivamente al tasso di interesse del Tesoro degli Stati Uniti a cinque anni più il 2,56%, con un tasso minimo del 6,00%. L’azienda prevede di utilizzare i proventi per riscattare le proprie azioni privilegiate perpetue non cumulative a tasso fisso e variabile del 6,15%, Serie A, e per scopi corporate generali, inclusi acquisti di aerei e rimborso del debito.
Air Lease (NYSE: AL) ha anunciado la fijación de precios para su oferta pública de 300,000 acciones de acciones preferentes perpetuas no acumulativas de tasa fija del 6.00%, Serie D, con una preferencia de liquidación de $1,000.00 por acción. Se espera que la venta cierre el 24 de septiembre de 2024. Los dividendos se acumularán al 6.00% desde el 24 de septiembre de 2024 hasta el 15 de diciembre de 2029, y posteriormente al Tasa del Tesoro de EE. UU. a cinco años más el 2.56%, con una tasa mínima del 6.00%. La empresa planea utilizar los ingresos para redimir sus acciones preferentes perpetuas no acumulativas de tasa fija y variable del 6.15%, Serie A, y para fines corporativos generales, incluidos las compras de aviones y el pago de deudas.
에어 리스(Air Lease)(NYSE: AL)는 6.00% 고정금리 리셋 비축적 영구 우선주 시리즈 D의 300,000주에 대한 공모 가격을 발표했습니다. 주당 청산 우선권은 $1,000.00입니다. 판매는 2024년 9월 24일에 마감될 것으로 예상됩니다. 배당금은 2024년 9월 24일부터 2029년 12월 15일까지 6.00%로 누적되며, 그 이후에는 미 재무부 5년물 금리 + 2.56%로, 최소 6.00%가 보장됩니다. 회사는 수익금을 사용하여 6.15% 고정-변동 비축적 영구 우선주 시리즈 A를 상환하고 항공기 구매 및 부채 상환 등 일반 기업 목적에 사용할 계획입니다.
Air Lease (NYSE: AL) a annoncé la tarification de son offre publique de 300 000 actions d’actions privilégiées perpétuelles non cumulatives à taux fixe de 6,00 %, série D, avec une préférence de liquidation de 1 000,00 $ par action. La vente devrait être finalisée le 24 septembre 2024. Les dividendes s’accumuleront à 6,00 % du 24 septembre 2024 au 15 décembre 2029, puis au taux des obligations du Trésor américain à cinq ans plus 2,56 %, avec un taux minimum de 6,00 %. La société prévoit d’utiliser le produit pour racheter ses actions privilégiées perpétuelles non cumulatives à taux fixe de 6,15 %, série A, et pour des besoins d’entreprise généraux, y compris l’achat d’avions et le remboursement de la dette.
Air Lease (NYSE: AL) hat die Preisfestlegung für ihr öffentliches Angebot von 300.000 Aktien der 6,00 % festverzinslichen nicht kumulierten ewigen Vorzugsaktien der Serie D bekannt gegeben, mit einer Liquidationspräferenz von 1.000,00 $ pro Aktie. Der Verkauf wird voraussichtlich am 24. September 2024 abgeschlossen. Die Dividenden werden vom 24. September 2024 bis zum 15. Dezember 2029 mit 6,00 % angesammelt und danach mit dem fünfjährigen US-Staatsanleihenzins plus 2,56 %, mit einem Mindestzinssatz von 6,00 %. Das Unternehmen plant, die Erlöse zu verwenden, um seine ausstehenden 6,15 % fixen und variablen nicht kumulierten ewigen Vorzugsaktien der Serie A einzulösen und für allgemeine Unternehmenszwecke, einschließlich Flugzeugkäufen und Schuldenrückzahlung.
Positive
- Successful pricing of $300 million preferred stock offering
- Potential for lower dividend payments compared to Series A stock (6.00% vs 6.15%)
- Funds to be used for aircraft purchases and debt repayment, potentially improving the company’s financial position
Negative
- Potential dilution of existing shareholders’ equity
- Increased dividend obligations may impact future cash flows
Air Lease ‘s $300 million preferred stock offering is a significant move to optimize its capital structure. The 6.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock provides a stable dividend rate for the first five years, with a potential increase thereafter based on the Five-year U.S. Treasury Rate. This structure offers investors a competitive yield while giving ALC flexibility in future interest rate environments.
The company’s plan to use proceeds to redeem existing preferred stock and for general corporate purposes, including aircraft purchases, demonstrates a proactive approach to liability management. This refinancing could potentially lower ALC’s overall cost of capital, especially if interest rates decline in the future. However, investors should note the non-cumulative nature of the dividends, which provides less protection than cumulative preferred stocks.
The timing of this offering is strategic, coming amid a recovery in the aviation sector. As travel demand rebounds, airlines are likely to increase their fleet renewal and expansion plans, benefiting aircraft leasing companies like ALC. The strong underwriter lineup, including major financial institutions, suggests confidence in the offering and ALC’s business model.
The perpetual nature of this preferred stock issuance provides ALC with a form of permanent capital, enhancing its long-term financial stability. This could be particularly valuable in an industry known for cyclicality. The $1,000 liquidation preference per share makes it accessible to a wide range of investors, potentially broadening ALC’s investor base.
The offering’s structure, with its reset feature and floor rate, provides a balance between investor protection and issuer flexibility. The 6.00% minimum rate ensures a baseline return for investors, while the reset mechanism allows for potential upside in rising rate environments. This could make the offering attractive to both income-seeking and rate-sensitive investors.
The non-cumulative feature gives ALC more financial flexibility but represents a trade-off for investors. It’s important for potential buyers to understand that missed dividend payments won’t accumulate. The detailed prospectus and SEC filings provide necessary transparency, adhering to regulatory requirements and offering investors comprehensive information for decision-making.
LOS ANGELES–(BUSINESS WIRE)– Air Lease Corporation (NYSE: AL) (the “Company”) announced the pricing today of its public offering of 300,000 shares (the “Shares”) of 6.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D (the “Series D Preferred Stock”), with a liquidation preference of $1,000.00 per share. The sale of the Shares is expected to close on September 24, 2024, subject to satisfaction of customary closing conditions.
The Company will pay dividends on the Shares when, as and if declared by the board of directors (or a duly authorized committee of the board of directors). Dividends will accrue, on a non-cumulative basis, at a rate per annum on the stated amount of $1,000.00 per share equal to: (i) 6.00% from September 24, 2024 to, but excluding, December 15, 2029, and (ii) the Five-year U.S. Treasury Rate (as defined in the prospectus supplement relating to the offering of the Shares, the “Prospectus Supplement”) as of the most recent reset dividend determination date (as defined in the Prospectus Supplement) plus 2.56% for each reset period (as defined in the Prospectus Supplement) from, and including, December 15, 2029, provided, that the dividend rate per annum during any reset period will not reset below 6.00% (which equals the initial dividend rate per annum on the Series D Preferred Stock), payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year, beginning on December 15, 2024.
The Company intends to use a portion of the net proceeds of the offering to redeem its outstanding 6.15% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, and use any remaining proceeds for general corporate purposes, which may include, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness.
Mizuho Securities USA LLC, BMO Capital Markets Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering of the Shares.
The Shares are being offered pursuant to the Company’s effective shelf registration statement, previously filed with the Securities and Exchange Commission (the “SEC”) on May 6, 2024. The offering of the Shares is being made only by means of the prospectus supplement dated September 17, 2024, supplementing the base prospectus dated May 6, 2024, as may be further supplemented by any free writing prospectus and/or pricing supplements the Company may file with the SEC. Before you invest, you should read the base prospectus, prospectus supplement and any other documents the Company may file with the SEC for more complete information about the Company and this offering. You may obtain these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies may be obtained from: (i) Mizuho Securities USA LLC toll-free at +1 (866) 271-7403, (ii) BMO Capital Markets Corp. toll free at (888) 200-0266, (iii) BofA Securities, Inc. toll-free at 1-800-294-1322, (iv) J.P. Morgan Securities LLC collect at (212) 834-4533, (v) RBC Capital Markets, LLC toll-free at (866) 375-6829, or (vi) Wells Fargo Securities, LLC toll-free at +1 (800) 645-3751.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Shares, nor shall there be any sale of the Shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the expected closing of the offering and the intended use of proceeds. Such statements are based on current expectations and projections about the Company’s future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including but not limited to, unexpected delays in the closing process for the Shares, unanticipated cash needs, and those risks detailed in the Company’s filings with the SEC, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 and the prospectus supplement to which this offering relates.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240917352071/en/
Investors:
Jason Arnold
Vice President, Investor Relations
Email: investors@airleasecorp.com
Media:
Laura Woeste
Senior Manager, Media and Investor Relations
Email: press@airleasecorp.com
Ashley Arnold
Senior Manager, Media and Investor Relations
Email: press@airleasecorp.com
Source: Air Lease Corporation
FAQ
What is the dividend rate for Air Lease ‘s new Series D Preferred Stock (AL)?
The initial dividend rate is 6.00% from September 24, 2024 to December 15, 2029. After that, it resets to the Five-year U.S. Treasury Rate plus 2.56%, with a minimum rate of 6.00%.
When will Air Lease (AL) close the sale of its Series D Preferred Stock?
The sale of the Series D Preferred Stock is expected to close on September 24, 2024, subject to customary closing conditions.
How does Air Lease (AL) plan to use the proceeds from the Series D Preferred Stock offering?
Air Lease plans to use the proceeds to redeem its outstanding Series A Preferred Stock and for general corporate purposes, including aircraft purchases and debt repayment.
What is the liquidation preference of Air Lease ‘s (AL) new Series D Preferred Stock?
The liquidation preference of the Series D Preferred Stock is $1,000.00 per share.
