Avolon Raises USD 14bn of Capital in 2017

Avolon Holdings Limited, the international aircraft leasing company, has repriced its senior secured USD 5.0 billion term B-2 loan facility (the “TLB-2”), the company said.

This repricing follows the pricing of a private offering (the “Offering”) by Avolon of USD 1.25 billion, aggregate principal amount, of unsecured senior notes (the “Notes”) on 14 September. The Offering was increased from an initial target size of USD 1.0 billion.

Year to date, including the USD 1.25 billion Notes, Avolon will have raised USD 14 billion of total capital. This includes both new equity and new debt, USD 9.75 billion of which will have been raised in the capital markets.

Avolon has repriced its USD 5.0 billion TLB-2 issued with a tenor of 5 years and originally priced in March 2017 at LIBOR plus 2.75% with a LIBOR floor of 0.75%. This has now been repriced at LIBOR plus 2.25% with a LIBOR floor of 0.75%. The repricing is expected to close on or about 4 October, 2017, subject to customary closing conditions. The repriced TLB-2 is in addition to Avolon´s senior secured USD 500 million term B-1 loan facility entered into in March 2017.

On 14 September, Avolon priced a private offering by its wholly owned subsidiary, Park Aerospace Holdings Limited, of USD 1.25 billion, aggregate principal amount, of unsecured senior notes. These Notes are in addition to the unsecured senior notes issued in January 2017 which include USD 1.75 billion, aggregate principal amount, of 5.25% senior notes due 2022 at par; and USD 1.25 billion, aggregate principal amount, of 5.50% senior notes due 2024, at par. The Offering increases the level of unsecured debt within the Avolon capital structure.

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 pro-forma owned, managed and committed fleet, as of 30 June, 2017 of 921 aircraft valued at over USD 46 billion.