TrueNoord prices US$400 million in senior unsecured notes

Regional aircraft lessor TrueNoord announced the successful pricing of US$400 million aggregate principal amount of its 8.750% senior unsecured notes due 2030 in a private offering by its wholly owned subsidiary, TrueNoord Capital Designated Activity Company (the “Issuer”). The Notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company and certain other subsidiaries of the Company.

The Issuer intends to use the net proceeds from the Notes to prepay a portion of the outstanding principal amount of the Company’s existing indebtedness, consisting predominantly of secured indebtedness, with the remainder available for general corporate purposes including to acquire, invest in, finance or refinance aircraft assets.

The Notes are expected to be issued on or about 13 February 2025, subject to customary closing conditions. The Notes are rated by Fitch Ratings (BB-) and S&P Global Ratings (B+). The rating agencies also provided initial corporate ratings for TrueNoord of BB- and B+, respectively.

Anne-Bart Tieleman, Chief Executive Officer of TrueNoord, stated, “This inaugural senior unsecured notes issuance marks a significant milestone in TrueNoord’s long-term strategy. The success of this issuance increases our cash flow and operational flexibility, and reflects the strength of our business and the confidence of the markets. It positions us for continued growth and enhances our ability to provide fleet solutions to our expanding customer base of respected airlines.”

“We are delighted to announce pricing of our inaugural senior unsecured notes offering,” added Paul Murphy, Chief Financial Officer of TrueNoord. “The investor community has shown great support to the business as we embark on a journey to transition to a predominantly unsecured capital structure. The increase in flexibility and diversity of our funding sources will fuel growth and underpin TrueNoord in these endeavours.”

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