Air Lease sets up $2 billion commercial paper program

LOS ANGELES - Air Lease Corporation (NYSE: NYSE:AL), a $5.25 billion market cap aircraft leasing company, announced the launch of a new commercial paper program, which will allow the company to issue short-term unsecured notes up to a total of $2 billion. According to InvestingPro data, the company currently maintains a substantial debt position of $20.16 billion, with a debt-to-equity ratio of 2.63. The notes, which are not to be registered under the Securities Act of 1933, will be used for general corporate purposes including the acquisition of commercial aircraft and repayment of existing debt.

The program permits Air Lease to borrow, repay, and reborrow funds, with the total outstanding principal amount of the notes not exceeding the $2 billion threshold at any given time. These notes are expected to be sold in the standard U.S. commercial paper market and will have the same ranking as all other unsecured and unsubordinated indebtedness of the company. InvestingPro analysis indicates the company's cash management requires attention, with negative free cash flow of $2.14 billion in the last twelve months, though it maintains a current ratio of 1.1.

This commercial paper program is part of Air Lease's broader strategy to manage its financing needs and maintain liquidity. The company has stated that the net proceeds from the notes will serve its corporate needs, which may vary over time.

The notes offered under this program will not be registered under the Securities Act and are not available for sale in the United States without registration or an applicable exemption from registration requirements. The announcement specifies that this press release is not an offer to sell or a solicitation of an offer to buy the notes.

The press release also contains forward-looking statements regarding the use of proceeds from the issuance of notes under the program. These statements are based on current expectations and are not guarantees of future performance. For a comprehensive analysis of Air Lease's financial health and detailed metrics, investors can access the full Pro Research Report available on InvestingPro, which includes expert insights on the company's debt management strategy and future prospects. The company cautions that actual results may differ materially from those projected due to various factors, including unexpected cash needs and other risks detailed in the company's SEC filings.

The information regarding the new commercial paper program is based on a press release statement from Air Lease Corporation.

In other recent news, Air Lease Corporation has been the subject of considerable attention. Goldman Sachs recently resumed coverage on the company, issuing a Buy rating and a price target of $65.00. The firm's positive outlook is rooted in an anticipated expansion of net spreads for Air Lease in 2025 and beyond, driven by a robust orderbook and favorable lease terms.

Air Lease also reported a robust growth in its Q3 earnings, with revenues reaching $690 million, marking a 5% increase year-over-year, and earnings per share at $0.82. The company expanded its fleet with 20 new aircraft valued at $1.9 billion and sold nine aircraft for an estimated $340 million. Despite facing challenges such as the Boeing (NYSE:BA) labor strike and aircraft delivery delays, Air Lease maintains an optimistic outlook for the remainder of the year, expecting substantial deliveries in the fourth quarter.

Furthermore, the company anticipates $900 million in aircraft deliveries in Q4 2024 and projects total 2024 deliveries to be approximately $4.6 billion. Despite a $12 million decrease in end-of-lease revenue for Q3, Air Lease maintains a strong liquidity position of $7.5 billion and a healthy debt-to-equity ratio of 2.63 times. These recent developments underscore the resilience of Air Lease in navigating the complexities of the global aircraft leasing market.

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