Dubai Aerospace says raises $2.3bn in bonds

Company said it would use part of the proceeds to fund acquisition of AWAS Group
Sun 23 Jul 2017 11:16 AM

Dubai Aerospace said on Monday it had raised $2.3 billion in senior bonds, which it intends to use to help fund its planned acquisition of aircraft leasing firm AWAS.

In a statement on its website, Dubai Aerospace said it had priced the bonds across three tranches.

These were $500 million of 4 percent notes due in 2020; $800 million 4.5 percent bonds due in 2022, and $1 billion 5 percent bonds due in 2024.

Dubai Aerospace said it would use part of the proceeds from the bond sale, together with cash on hand, to pay for the acquisition of Dublin-based AWAS, announced earlier this year.

The Dubai government-controlled company announced in April it would acquire 100 percent of the AWAS group of companies from funds managed by Terra Firma Capital Partners and the Canadian Pension Plan Investment Board.

The terms of the transaction were not disclosed at the time.

AWAS has a fleet of 263 owned, managed and committed narrow and wide-body aircraft, including a pipeline of 23 new aircraft to be delivered by the end of 2018.

The combined company will have a fleet of 394 aircraft with a total value of over $14 billion, Dubai Aerospace added.

It said settlement of the bond offering is expected to occur on 4 August. Pending completion of the AWAS acquisition of AWAS, the gross proceeds of the offering will be placed into an escrow account with Wells Fargo Bank, National Association.

The notes are to be fully and unconditionally guaranteed by Dubai Aerospace, it said.

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