AerCap prices $1.5 billion senior notes offering

DUBLIN - AerCap Holdings N.V., a global leader in aviation leasing with a market capitalization of $17.56 billion, has priced a $1.5 billion offering of senior notes through its subsidiaries, AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust. The offering includes $750 million of 4.875% Senior Notes due 2028 and an equal amount of 5.375% Senior Notes due 2031, both guaranteed by AerCap and certain subsidiaries. According to InvestingPro data, while the company operates with a significant debt burden of $48.5 billion, its healthy current ratio of 1.98 indicates strong short-term liquidity position.

The company plans to allocate the net proceeds from the notes for general corporate activities, which encompass financing or refinancing aircraft assets and repaying existing debts. The offering has attracted Citigroup (NYSE:C), Deutsche Bank (ETR:DBKGn) Securities, Barclays (LON:BARC), Credit Agricole (OTC:CRARY) CIB, and TD Securities as joint book-running managers.

The offering was registered with the U.S. Securities and Exchange Commission (SEC) on October 18, 2024, and the registration statement became effective immediately. The prospectus dated October 18, 2024, and the preliminary prospectus supplement dated today provide more detailed information on the offering.

AerCap, listed on the New York Stock Exchange under the ticker NYSE:AER, operates from Dublin and has a global presence with offices in various international locations. The company boasts one of the industry's most attractive order books and serves approximately 300 customers worldwide with fleet solutions. InvestingPro analysis indicates the stock is currently fairly valued, with impressive gross profit margins of 58% and trading at an attractive P/E ratio of 7.3. For deeper insights into AerCap's valuation metrics and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The press release also contained forward-looking statements regarding AerCap's future performance. These statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Such factors include capital availability, lessees' ability to make payments, demand for leasing services, and broader economic and political conditions, among others. Notably, InvestingPro reports that three analysts have recently revised their earnings upwards for the upcoming period, with the next earnings announcement expected on February 13, 2025.

Investors should note that this press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities. The offering of securities will only be made by means of a prospectus supplement and accompanying prospectus.

This news article is based on a press release statement from AerCap Holdings N.V. and does not include any endorsements or subjective claims.

In other recent news, AerCap Holdings has been expanding its operations and demonstrating robust financial performance. The company has ventured into new aircraft leases with Saudi Arabia's Aloula Aviation, a subsidiary of Aramco (TADAWUL:2222), marking a continuation of their partnership. Meanwhile, AerCap reported an adjusted net income of $463 million, with a record operating cash flow of $5.6 billion over the past twelve months.

Goldman Sachs resumed coverage on AerCap, issuing a Buy rating, based on anticipated improvements in lease mix and strong gains on sales. Similarly, Citi maintained its Buy rating on AerCap and raised the price target to $117.00, reflecting stronger anticipated lease rates and a modest increase in leasing expenses for the years 2025 and 2026.

Despite delivery delays from Boeing (NYSE:BA) and Airbus impacting its fourth-quarter delivery expectations, AerCap maintains a strong liquidity position with approximately $23 billion in sources. Recent developments, including a new $500 million share repurchase authorization and a quarterly dividend of $0.25 per share, hint at a positive trajectory for AerCap's financial performance in the coming years.

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