Global Aircraft Slaps Up to 13% Yield on $1.95 Billion Junk Bond

Global Aircraft Leasing Co. is looking to raise $1.95 billion in the junk-bond market to help refinance debt coming due next year.

The proposed bonds are structured as payment-in-kind toggle notes, which give the borrower the option to pay interest with more debt, according to a person with knowledge of the matter. Morgan Stanley is managing the sale, the person said.

Bankers are sounding out investor interest in notes that would pay 11% in cash or 13% in kind, according to people with knowledge of the matter, who aren’t authorized to speak publicly. A representative for Morgan Stanley declined to ...