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Aircraft leasing company, Dubai Aerospace Enterprise, announced the early redemption of its $800 million 4.50 percent senior notes due 2022 and the $1 billion 5 percent senior notes due 2024.
The notes are scheduled to be redeemed on August 2, 2021, the company said in a statement. The outstanding principal amount of the notes as of the date of the redemption notice was approximately 1.25 billion.
The notes will be redeemed in accordance with the terms and conditions of the applicable indenture at a redemption price equal to 100 percent of the principal amount of the 4.50 percent notes and 102.500 percent of the principal amount of the 5 percent notes, plus accrued and unpaid interest, if any.
In 2021, DAE issued new senior unsecured notes with a combined principal amount of $2.55 billion, with a weighted average maturity of 4.5 years, and has redeemed or announced for redemption senior unsecured notes with a combined outstanding principal balance of approximately $1.70 billion.Moody’s Investor Service recently revised the leaser’s outlook from negative to stable amid growing air travel demand and the expectation that that “DAE will maintain strong access to alternate liquidity and low leverage.”
(Writing by Brinda Darasha; editing by Daniel Luiz)
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© ZAWYA 2021
