S&P rates Aircastle preferreds BB

S&P said it assigned its BB issue-level rating to Aircastle Ltd.'s planned series A fixed-rate reset cumulative perpetual preference shares with the final amount to be determined upon close.

“The preferred shares will rank senior to the company's common stock, and we classify them as having intermediate equity credit (50% equity) based on the proposed terms, thus we rate the instrument two notches below our BBB- long-term issuer credit rating on Aircastle to reflect its subordination and payment flexibility due to the optional deferability of the dividend payments,” the agency said in a press release.

The company will use the proceeds for general corporate purposes, including repaying debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.