China Aircraft Leasing Group Holdings has unveiled a $270m loan into syndication, which it is raising through a Cayman Islands subsidiary, CALC PDP 9.
The deal comes with a greenshoe option that can boost the size to $350m.
China Everbright Bank is the sole mandated lead arranger and bookrunner for the four year revolver. The deal pays a margin of 240bp over daily Sofr.
Lead arrangers committing $40m-50m make a top level all-in fee of 258bp, co-lead arrangers committing $30m-$39 earn 255bp, and lead managers committing $20m-$29m receive 252bp.
The proceeds will be used for airplane purchases. The commitment deadline is August 5.
The parent has guaranteed the deal.
“During the most difficult times, the company’s financial performance was okay. While the pandemic is easing and the lockdowns in China are gradually lifted, its financial status will improve,” a source close to the situation told GlobalCapital Asia.
China Aircraft Leasing’s revenue was HK$3.3bn ($420m) in 2021, a 6% fall from the HK$3.5bn recorded in 2020, according to its financial results.
In 2021, the firm received a first-time corporate family rating of Ba1 from Moody’s, while Fitch Ratings gave it a long-term issuer default rating of BB+.
China Aircraft Leasing last sealed a $840m loan in 2019. A group of 17 banks were involved. Bank of Communications Hong Kong, China Everbright Bank’s Hong Kong branch, Chiyu Bank, Chong Hing Bank, ICBC (Asia), Nanyang Commercial Bank, Agricultural Bank of China Hong Kong, Ping An Bank Shenzhen and Shanghai Pudong Development Bank were the mandated lead arrangers. The first six banks were also bookrunners, according to a press release at the time.
In 2018, the group sealed a $790m deal. Credit Suisse, Goldman Sachs, Société Générale and SPDB led the transaction, data from Dealogic shows.
In 2011, China Everbright Aerospace Holdings, a subsidiary of China Everbright, bought a 48% stake in China Aircraft Leasing. The following year, China Aircraft Leasing brought in Hang Tian Investment Holdings, part of China Aerospace Science and Technology Corp, as a strategic investor. Due to that, China Everbright's stake in the borrower dropped to about 44%.
In 2014, China Aircraft Leasing was listed on the main board of the Hong Kong Stock Exchange. As an investment holding company, it offers aircraft leasing services in Asia and Europe.