Air Jamaica on Runway with $125m 2027

Jamaica’ flagship airline, Air Jamaica, aims to price $125m in 2027 amortizing notes, with an average life of 15 years Thursday afternoon. The bonds, rated B1/B by Moody’s and S&P, are heard by a trader coming at 7.625%-7.875%, a slight pickup to where the sovereign would price the same maturity. A person close to the transaction says it should come at a modest concession to the interpolated curve which was around 7.75% area Wednesday night. The deal will not grow. Jamaica is guaranteeing the bonds. Proceeds will be used to revamp the fleet and pay down debt. Bear Stearns has sole books.