Air Lease Prices Public Offering of Preferred Stock

By Bobby Samwell • Wednesday, September 18 07:55 • Permanent Link

Air Lease Corporation (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 offering is expected to close on September 24, 2024.

The company will pay dividends on the shares at a rate of 6.00% from September 24, 2024, to December 15, 2029. After December 15, 2029, the dividend rate will be based on the five-year U.S. Treasury rate plus 2.56% for each reset period, with a floor of 6.00%. Dividends will be payable quarterly in arrears on March 15, June 15, September 15, and December 15 of each year, beginning on December 15, 2024.

Air Lease Corporation 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 allocate any remaining proceeds for general corporate purposes, including the purchase of commercial aircraft and the repayment of existing indebtedness.

The offering is being managed by 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.

The shares are being offered pursuant to the company’s effective shelf registration statement filed with the Securities and Exchange Commission (SEC) on May 6, 2024.

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. As a result of these announcements, the company's shares have moved 0.4% on the market, and are now trading at a price of $44.18. For more information, read the company's full 8-K submission here.

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