(19 January 2010 – USA) The Commonwealth Bank of Australia has become one of US Business Air Lease Corporation’s largest shareholders, following a US$125 million (A$125.54 million) investment.Disclosures in the US before a planned US$100 million capital raising show CBA agreed to take the stake in June last year, which has positioned the bank as one of the top shareholders with just under 10 percent or 6.25 million shares.
Ian Saines, group executive of CBA’s institutional banking division, represents the bank on the board.
In its preliminary prospectus, Air Lease says it issued a warrant to the Commonwealth to buy 268,125 shares of common stock as ”consideration” for a commitment to purchase US$125 million ”of our common stock in connection with a private placement of our stock”.
The warrant has a seven-year term and an exercise price of US$20 a share.
Air Lease has 40 aircraft and will buy 144 new aircraft by 2017 to expand its business, especially in growth markets like Asia and the Pacific rim.
The company’s clients include Virgin.
Air Lease said that “airlines in some of these emerging markets have fewer financing alternatives, enabling us to command relatively higher lease rates compared to more mature markets.”