VistaJet guides add-on to 10.5% senior notes due 2024

Price talk is set at 101.50-101.75 for VistaJet Malta Finance P.L.C.'s proposed add-on to its existing 10.5% senior unsecured notes due 2024, sources said. The issuer will now print an additional $150 million of the bonds, upsized from $100 million.

Books for the deal will close today at 10:30 a.m. ET. Credit Suisse is leading the offering.

VistaJet Malta Finance provides aviation services. The company operates as a subsidiary of VistaJet Group Holding SA. Proceeds, including those stemming from the upsize, will be used to repay certain outstanding secured aircraft financing debt and to pay fees and expenses related to the current debt raise.

VistaJet placed the initial $550 million tranche of the bonds in May 2019. The notes will hit their first call June 1, 2022, at par plus 50% of the coupon, and are structured with an up-to-35% equity claw at 110.5% during the non-call period. The bonds closed yesterday's session at 103 with a 9.04% yield to worst, according to S&P Global Market Intelligence.

Existing unsecured debt ratings are CCC+/Caa1. Moody's on Jan. 21 placed the company's ratings on review for downgrade.