Press Release
BOC Aviation Re-Opens and Increases its Existing 10-Year Senior Unsecured Notes Due 2023
03 May 2013
*NOT FOR DISTRIBUTION IN THE UNITED STATES*
BOC Aviation Pte. Ltd. ("BOC Aviation") today successfully priced a US$150 million re-opening of the existing US$350 million 4.375% Senior Unsecured Notes due May 2023 (the "Notes"), to tap into unfilled investor demand. The re-opened issuance was more than six times subscribed with orders exceeding US$900 million.
Carrying the same coupon rate of 4.375% per annum and the same maturity date of 2 May 2023 as the existing bonds, the additional US$150 million in new Notes were priced to yield 4.265% p.a. with a spread of 263 basis points p.a. over 10-year Treasury notes, with interest payable semi-annually in arrears.
Following the re-opening , the new total deal size for the Notes will be US$500 million. The additional Notes were arranged by BOC International and HSBC as joint bookrunners. Settlement will be 10 May 2013, subject to the satisfaction of customary closing conditions.
The unsecured notes will be listed on SGX-ST and will be rated BBB- by Standard & Poor’s Ratings Services, and A- by Fitch Ratings. BOC Aviation will apply the net proceeds to fund its new capital expenditure, for general corporate purposes and/or refinancing existing borrowings.
In terms of allocation, 43% went to insurance companies, 38% to funds and asset managers, 12% to private banks and 7% to banks and other investors.
Robert Martin, Managing Director and Chief Executive Officer of BOC Aviation, commented, “Following the robust response for our first benchmark 10-year unsecured note issuance , we are pleased to have been able to broaden our investor base through the bond re-opening. The ability to build out the size of our existing 10-year benchmark bond demonstrates the strong credit standing of BOC Aviation and establishes a strong base for future fund raising by the company.”
BOC Aviation is the leading Asia-based aircraft leasing company with a portfolio of 219 owned and managed aircraft operated by airlines worldwide and another 87 aircraft on firm order. The Company has one of the youngest fleets in the industry with an average owned aircraft age of less than four years.
BOC Aviation is 100% owned by Bank of China, one of the largest banks in the world.
BOC Aviation will be celebrating its 20th anniversary this year.
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This announcement does not constitute an offer to buy, or a solicitation of an offer to sell, any Notes and no such offer, solicitation, purchase or sale shall be made in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful.
The Notes have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act") or the securities laws of any state of the United States or other jurisdiction and may not be offered, sold, pledged or otherwise transferred within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities law.
This announcement may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the Issuer’s current view on future events.
The value of the Notes, and the income derived from them may fall as well as rise. An investment in the Notes is subject to investment risks, including the possible loss of the principal amount invested. FSA/ICMA Stabilisation applies.
The past performance of BOC Aviation is not necessarily indicative of the future performance of BOC Aviation.
For more information, please contact:
Claire LEOW
Tel: +65 6325 9638
[email protected]
www.bocaviation.com