AIG Unit Pays Up for Debt

Plane-leasing business offers higher yield on notes than similarly rated companies.

American International Group Inc.’s plane-leasing unit offered a higher yield than similarly rated companies on its first bonds since May as it seeks to pay back debt and finance aircraft purchases.

International Lease Finance Corp., rated B1 by Moody’s Investors Service and BBB- by Standard & Poor’s, sold $650 million of 8.625 percent, 10-year notes, according to data compiled by Bloomberg. That compares with the average 4.51 percent yield for debt on the lowest investment-grade tier of BBB and 8.99 percent on bonds with B grades, according to Bank of America Merrill Lynch index data.

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