BOC Aviation Prices Inaugural US$750 Million Rule 144a/Regulation S Notes
24 Mar 2015
NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA
This announcement does not constitute or form a part of an offer for sale of securities, nor a solicitation to purchase or subscribe for securities in the United States or any other jurisdiction. The securities referred to herein have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state of the United States and may not be offered or sold in the United States or to or for the account or benefit of U.S. persons absent registration or an exemption from registration under the Securities Act. Any offering of securities to be made in the United States or elsewhere will be made by means of a prospectus or an offering circular that may be obtained from the issuer that will contain detailed information about the issuer and its management, as well as financial statements. Nothing in this announcement shall constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction in which such offer or sale would be unlawful.
BOC Aviation Pte. Ltd. ("BOC Aviation") has priced its inaugural issuance of Rule 144A/Regulation S US$750 million 5-year fixed rate senior unsecured notes due 2020 (the "Notes") at a coupon of 3% per annum.
The transaction was issued under BOC Aviation's US$5 billion Global Medium Term Note (“GMTN”) Program. The joint bookrunners for the issue were BOC International, Citigroup, The Hongkong and Shanghai Banking Corporation Limited and J.P. Morgan. Morgan Stanley acted as co-manager.
The Notes will bear a fixed interest coupon of 3% per annum with interest payable semi-annually in arrears. The yield to investors will be 3.118% per annum, representing a spread of 170 basis points per annum over 5-year US Treasury. BOC Aviation will apply the net proceeds to fund capital expenditure, refinance existing borrowings or for general corporate purposes.
The Notes will be listed on the SGX-ST, and will be rated BBB+ by Standard & Poor’s Rating Services, and A- by Fitch Ratings.
In terms of distribution, the Notes were allocated to 284 accounts in the United States (50%), Asia (39%) as well as Europe and Middle East (11%).
Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, said, “This is our largest bond transaction to date. We are very pleased with the positive response to our inaugural Rule 144A/Reg S issuance following the conversion to a GMTN program. We have successfully broken new ground, accessing a new investor base in the United States and further diversifying our funding sources.”
BOC Aviation is a leading global aircraft leasing company with a portfolio of 250 owned and managed aircraft operated by 60 airlines worldwide in 31 countries, with commitments to acquire 201 aircraft, as of 31 December 2014. BOC Aviation has one of the youngest fleets in the industry with an average owned aircraft age of less than four years. BOC Aviation, owned by Bank of China, is based in Singapore with offices in Dublin, London, Seattle and Tianjin.
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