HNA-Backed Plane Lessor Issues New Debt to Pay for Old Interest

Global Aircraft Leasing Co. Ltd., a unit of debt-laden Chinese conglomerate HNA Group Co., is selling new debt to pay off interest on bonds it sold before the pandemic upended the aviation market.

The deal is a so-called $50 million tap issuance of a bond the company sold in 2019, and will be used to pay interest to existing investors due on Sept. 15, according to people familiar with the matter. The notes priced on Friday at a discount of 93.5 cents on the dollar plus accrued interest, and pay a cash coupon of 6.5% interest, according to one ...