Avolon closes USD 768.4m fixed rate secured notes by Sapphire Aviation Finance



Avolon, the international aircraft leasing company, has announced that Sapphire Aviation Finance I Limited and Sapphire Aviation Finance I (US) LLC (collectively the “Issuers” or “SAPA 2018-1”), newly established special purpose companies, closed a total of USD 768.4 million of Fixed Rate Secured Notes (the “Issue”), the company said.

The Issue comprised of USD 633 million of 4.250% Series A Fixed Rate Secured Notes (the “Series A Notes”) issued at a 4.30% yield; USD 97 million of 5.926% Series B Fixed Rate Secured Notes (the “Series B Notes”) issued at a 6.00% yield; and USD 38.38 million of 7.385% Series C Fixed Rate Secured Notes (the “Series C Notes”) issued at a 7.50% yield (collectively, the “Notes”). The Notes are rated:

The Notes are backed by a portfolio of 41 aircraft (the “Portfolio”), with an appraised value of USD 962.4m, which will be acquired by SAPA 2018-1 from Avolon using the proceeds of the issuance. The Portfolio comprises a mix of narrowbody and twin-aisle aircraft leased to 30 lessees based in 19 countries. As at 9 February 2018, the Portfolio had an average weighted age of 12 years. Avolon will act as servicer with respect to the Portfolio and any additional aircraft acquired by the Issuers.

Wells Fargo acted as Sole Structuring Agent, Sole E Note Placement Agent and Joint Bookrunner. BNP Paribas and Crédit Agricole also acted as Joint Bookrunners for the transaction. BNP Paribas was the Liquidity Facility provider to the Issuers.

Clifford Chance advised Avolon and the Issuers, and Hughes Hubbard & Reed LLP acted as counsel to the Joint Lead Structuring Agents.

Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is a wholly owned, indirect subsidiary of Bohai Capital Holding Co., Ltd., a Chinese public company listed on the Shenzhen Stock Exchange (SLE: 000415). Avolon is the world´s third largest aircraft leasing business with a owned, managed and committed fleet, as of 31 December, 2017 of 908 aircraft.