(Bloomberg) — Global Aircraft Leasing Co. raised $1.1 billion in the junk-bond market to help refinance debt coming due next month.
The senior secured bonds have a rare short-dated three-year structure and can be repaid after one-and-a-half years, according to a person with knowledge of the matter. Morgan Stanley managed the sale, the person said.
The bonds priced Friday at a yield of 8.75% compared to earlier discussions of as much as 9%, according to the person. Proceeds, along with additional $990 million of shareholder equity, will refinance 6.50% payment-in-kind senior toggle notes that mature in September.
Global Aircraft Leasing did not immediately respond to a request for comment. Morgan Stanley declined to comment.
Last year, Global Aircraft sought to raise almost $2 billion in a similar refinancing deal with payment-in-kind toggle notes. The deal fell through, leading Fitch Ratings to withdraw the firm’s long-term issuer default rating in July.
Global Aircraft owns a stake in Avolon Holdings Ltd., one of the world’s largest global aircraft leasing companies. Global Aircraft, in turn, is a unit of Beijing-based Bohai Leasing Co.
–With assistance from Michael Tobin.
(Updates with details of pricing throughout.)
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