Dubai Aerospace Enterprise to use cash to buy Dublin-based lessor Awas
Dubai aircraft lessor prices $2.4bn bonds
Dubai Aerospace Enterprise (DAE), the aircraft leasing and maintenance company controlled by the Dubai Government, has priced US$2.3 billion in senior bonds split across three tranches, the company said on Sunday.
The firm priced $500 million of 4 per cent notes due in 2020, $800m 4.5 per cent bonds due in 2022 and $1bn 5 per cent bonds due in 2024, it said.DAE said it will use part of the proceeds from the bond sale, together with cash on hand, to pay for the acquisition of the Dublin-based lessor Awas, announced earlier this year.
DAE said in April it was acquiring Awas from the private equity firm Terra Firma Capital Partners and the Canadian Pension Plan Investment Board.The acquisition, subject to regulatory approval, is expected to close in the third quarter.
DAE will emerge as one of the world's major aircraft lessors once the deal completes, increasing its fleet from 131 owned, managed and committed jets to 394 with a total value of over $14bn. It will have more than 110 airline customers spread across 55 countries.
The company is to consider an aircraft order of more than 20 new aircraft once the acquisition completes, said the chief executive Firoz Tarapore. It is interested in buying narrow and wide-body jets from Airbus and Boeing, and turboprop aircraft from ATR which is co-owned by Airbus and Italy's Leonardo.