Aircraft leasing firm Aviation Capital Group (ACG), based in Newport Beach, California, has closed an offering of five-year bonds amounting to US$750 million. The senior unsecured notes pay a coupon of 1.95%, and were sold at a price of 99.749%.

The bonds are recourse only to ACG and are not guaranteed by ACG’s parent company, any of ACG's subsidiaries, or any third party. ACG is a wholly owned subsidiary of Tokyo Century Corporation.

The notes were sold to qualified institutional buyers under Rule 144A in the United States and Regulation S globally. ACG intends to use the net proceeds for general corporate purposes, including repayment of outstanding indebtedness and the purchase of commercial aircraft.

Bookrunners were Mitsubishi UFJ Financial Group, Credit Suisse, Goldman Sachs, J.P. Morgan and Wells Fargo.

Aviation Capital Group has over 400 owned, managed and committed aircraft, leased to 85 airlines in 40 countries.

In August the company announced the delivery of one new Airbus A220-300 aircraft on long-term lease to airBaltic. It was the fourth A220 aircraft to be leased by ACG to airBaltic as part of a sale and leaseback transaction.

Also in August ACG announced the delivery of one new Airbus A321neo aircraft on long-term lease to S7 Airlines of Russia. Powered by Pratt & Whitney PW1133G-JM engines, this is the first of three A321neos to be delivered in 2021 to S7 from ACG’s order book. It is the 10th aircraft that ACG currently has on lease with the airline.

And in June the company delivered one new Airbus A320neo aircraft on long-term lease to Viva Air of Colombia. The aircraft, featuring CFM International LEAP-1A engines, was the final lA320neo to be delivered to Viva Air under an order for eight aircraft.