Le Lézard
Classified in: Transportation
Subjects: Funding, Bond Issue

Air Lease Corporation Completes First Ever North American Corporate Sukuk Offering

Today Air Lease Corporation (NYSE: AL) announced the successful completion of its inaugural sukuk issuance. The transaction, settled on March 15, 2023, represented the first ever offering of its kind into the Middle East market from a North American corporate and the largest sukuk from a US-based borrower in history.

The offering consisted of US$600 million aggregate principal amount of 5.85% trust certificates due April 1, 2028 (the "Certificates"). The Company will make semi-annual distributions of the profit rate under the Certificates. The Certificates were offered pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, are rated "BBB" by both S&P and Fitch with a Stable Outlook and listed on the London Stock Exchange.

"This inaugural sukuk offering is a testament to ALC's strong credit profile and further evidence of our commitment to a well-diversified, global funding program," said Gregory B. Willis, Executive Vice President and Chief Financial Officer of Air Lease Corporation. "We are grateful to our banking partners for their commitment and support in structuring and executing this landmark transaction. Thank you to Bank ABC, DIB, Al Rayan, Citi, Deutsche Bank, Emirates NBD, JPMorgan, KFH Capital and Warba Bank who served as our joint lead managers. In addition, thank you to Allen & Overy and Clifford Chance for their legal guidance and the entire Air Lease team for their support in making this transaction a huge success."

"We are proud to highlight the strong liquidity in this region and the opportunity for other investment grade borrowers to raise funds at cost efficient rates. This transaction complements our strong airline relationships in the Middle East and we look forward to further developing our funding presence in this region," added Daniel Verwholt, Senior Vice President and Treasurer of Air Lease Corporation.

The Company intends to use the net proceeds of the offering for general corporate purposes, which may include, among other things, the purchase of commercial aircraft and the repayment of existing indebtedness.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Certificates, nor shall there be any sale of the Certificates in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to expectations regarding the Company's future financing activity and the intended use of proceeds. Such statements are based on current expectations and projections about the Company's future results, prospects and opportunities and are not guarantees of future performance. Such statements will not be updated unless required by law. Actual results and performance may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors, including but not limited to, changes in the global markets and financing landscape, unanticipated cash needs, and those risks detailed in the Company's filings with the SEC, including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

About Air Lease Corporation (NYSE: AL)

Air Lease Corporation is a leading global aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing new commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. The company routinely posts information that may be important to investors in the "Investors" section of its website at www.airleasecorp.com. Investors and potential investors are encouraged to consult Air Lease Corporation's website regularly for important information. The information contained on, or that may be accessed through, ALC's website is not incorporated by reference into, and is not a part of, this press release.

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