Dubai: Dubai Aerospace Enterprise plans to redeem $500 million (Dh1. 8 billion) of senior notes - with a 5.75 per cent coupon rate - issued by it.
The redemption for these notes is due in 2023, as per the original schedule. The outstanding principal amount as of the date of the redemption notice was about $456.1 million (Dh1. 7 billion).
Senior notes are bonds that must be repaid before most other debts in the event that the issuer declares bankruptcy. Wells Fargo Bank, N.A. is the trustee and paying agent for the notes.
DAE has also set the pricing for the $300 million aggregate principal amount of 1.625 per cent Notes due 2024. These represent senior unsecured obligations and will be issued under DAE’s $2.5 billion Global Medium-Term Note Programme, which is rated ‘BBB-‘ by Fitch Ratings and ‘Baa3’ by Moody’s Investors Service.
They are being issued by DAE Funding llc and guaranteed by Dubai Aerospace Enterprise (DAE) ltd. It will be issued at a price of 99.427 per cent and mature on February 15, 2024.
Net proceeds will be used for general corporate purposes, including redemption of certain outstanding debt securities issued by DAE Funding.