Air Lease Corporation (NYSE:AL) has priced their new fixed-to-floating rate preferred with a starting fixed rate of 6.15%. The rate will trade at 3 month Libor plus a spread of 3.65% beginning in 2024.
From my perspective this is ridiculously low for an issue that is also non cumulative.
Of course we are pretty conservative, but anyone older than 30 knows that when the economy heads south (someday-who knows when) that airlines and those that lend to them are at the front of the line for problems.
Regardless of what I think there no doubt will be plenty of demand for the issue.
The issue is rated BB+ by S&P and BB+ by Fitch.