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North American Newsletter 29 June

North American Newsletter 29 June

Air Lease Corporation Announces Lease Placement of Airbus A319 Aircraft with HiSky Moldova

Air Lease Corporation announced a long-term lease placement for one used Airbus A319-131 aircraft with HiSky Moldova.  Scheduled to deliver this September, this aircraft will be the second aircraft in the fleet of the Moldovan startup airline. “ALC is pleased to announce this second lease placement with HiSky Moldova,” said David Beker, Vice President and Head of Aircraft Sales and Trading of Air Lease Corporation.  “We have been impressed with the business plan underpinning this new clean-sheet airline in Moldova and are honored to provide the first A319 and A320 aircraft to HiSky Moldova so that they can launch their airline later this summer.  We look forward to growing and expanding our relationship over the coming years.”

American Airlines Announces Pricing of Senior Secured Notes 

American Airlines announced that it priced $2.5 billion aggregate principal amount of its 11.75% senior secured notes due 2025 .The Notes will have an interest rate of 11.75% per annum and are being issued at a price equal to 99% of their face value. The size of the offering of the Notes was increased from the previously announced $1.5 billion. The Notes will be guaranteed on a senior unsecured basis by American Airlines Group Inc. The Company also announced that it decided not to proceed with its previously announced $500 million term loan facility due to increased demand from investors in the offering of the Notes. The offering of the Notes is expected to close on June 30, 2020, subject to customary closing conditions. American expects to use a portion of the net proceeds from the offering of the Notes to refinance its delayed draw term loan facility which the Company and the Guarantor entered into on March 18, 2020, and is scheduled to mature on March 17, 2021, with the remainder for general corporate purposes and to enhance the Company’s liquidity position.

Aviation Capital Group Announces the Closing of $600 Million Intercompany Line of Credit with Tokyo Century Corporation

Aviation Capital Group LLC (ACG) announced the closing of a $600 million unsecured revolving line of credit with its 100% owner Tokyo Century Corporation. The facility has an initial term of 3 years and will automatically extend for additional one-year periods with mutual consent. “Maintaining our strong investment grade rating profile is very important to both ACG and Tokyo Century. This multi-year $600 million line of liquidity provides an additional layer of capital support which benefits the company and our investors,” said Madhu Vijay, Executive Vice President and Chief Financial Officer of ACG.

De Havilland Canada Delivers First Dash 8-400 Aircraft to TAAG Angola Airlines

De Havilland Aircraft Canada delivered the first of six Dash 8-400 aircraft to TAAG Angola Airlines. Rui Carreira, Chairman and Chief Executive Officer, TAAG Angola Airlines said “We selected the Dash 8-400 aircraft to support our development of a stronger domestic network and also to support our regional and international networks. With our acceptance of our first Dash 8-400 aircraft, we are continuing to implement our restructuring strategy and enhancing our service to smaller communities.  The Dash 8-400 aircraft is well known for its comfortable passenger amenities, operational versatility and outstanding economics, which will be critical for TAAG’s operations where large aircraft are not economical.  We look forward to its introduction to our fleet and to the diligent, ongoing support of De Havilland Canada’s teams as we build our network.”

United Announces Upsized Pricing of MileagePlus Senior Secured Notes Offering

United Airlines announced the pricing and upsize of the previously announced private offering by Mileage Plus Holdings, LLC, a direct wholly-owned subsidiary of United that operates the MileagePlus program and Mileage Plus Intellectual Property Assets, Ltd., an indirect wholly-owned subsidiary of MPH. An aggregate of $3.8 billion in principal amount of 6.50% senior secured notes due 2027 is expected to be issued on July 2, 2020, subject to customary closing conditions. Concurrently with the issuance of the Notes, United expects the MileagePlus Subsidiaries to enter into a credit agreement providing for a term loan facility for an aggregate of $3.0 billion, also subject to customary closing conditions. The Notes and the Term Loan Facility, in a total aggregate amount of $6.8 billion, replace the previously announced committed term loan facility.

United Airlines Resuming Service Between San Francisco and Shanghai

United Airlines announced it will resume service to China with twice-weekly flights between San Francisco and Shanghai’s Pudong International Airport via Seoul’s Incheon International Airport beginning 8th July. United will operate service with Boeing 777-300ER aircraft twice weekly. “United’s service to mainland China has been a point of pride for our employees and customers for more than 30 years,” said Patrick Quayle, United’s vice president of International Network and Alliances. “Resuming service to Shanghai from the United States is a significant step in rebuilding our international network.”

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