ACG raises $750m in sale of notes
Aviation Capital Group (ACG) has closed the sale of $750m of its 6.750 per cent senior notes due April 6, 2021.
The aircraft leasing company said it will use the cash for general corporate purposes. Following the sale, Fitch assigned the company a rating of BBB-. Issuer default rating (IDR) and stable rating outlook are unaffected by the rating. Fitch stated that on a “stand-alone basis… ACG would not be rated in the investment-grade category”, however it considers AGC’s parent company, Pacific LifeCorp (PLC), “strongly committed” to the leasing division. It stated that PLC’s $600m investment “provides some uplift to ACG's intrinsic credit profile but reflects the possibility that future support may be limited”. ACG has a portfolio of 240 aircraft and a book value of approximately $5.3bn as of December 31, 2010.
