Avolon (NYSE: AVOL), the international aircraft leasing company, today
announces the completion of a new $675 million 8 year secured debt
facility. The new facility will finance up to 21 aircraft at a margin of
1.65%. The facility is financed by six banks based in Europe and
Asia-Pacific.
Highlights
4 New $675 million full recourse secured facility with proceeds to be
used to finance upcoming deliveries in addition to refinancing existing
facilities.
4 Additional financing is incremental to Avolon’s undrawn debt of $920
million at March 31, 2015.
4 Significant flexibility including an availability period of up to 15
months, blind capacity to finance up to three aircraft that have not
been identified at the time of entering into the facility and
substitution rights to facilitate aircraft trading activity.
4 8 year facility, at a margin of 1.65%, reflects the financial strength
of Avolon and strong demand for the transaction.
4 Facility upsized from original RFP target of $500 million.
4 Mandated lead arrangers are: Bank of Ireland Corporate Banking, The
Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Commonwealth Bank of
Australia (London Branch), HSBC Bank plc and Natixis SA.
Andy Cronin, Avolon CFO, commented:
“The closing of our single largest debt transaction, at a margin of
1.65%, is a milestone for the business and reflects the strength of our
credit profile and strong demand from the bank market. This facility is
consistent with our stated strategy of funding the business with low
cost, long-term debt.”
“With this transaction we strengthen our existing banking
relationships, add MUFG through The Bank of Tokyo-Mitsubishi UFJ, Ltd.
to our lender group and complete our first transaction with Bank of
Ireland Corporate Banking as a lead arranger in one of our debt
facilities. The strength and depth of our banking relationships have
been instrumental in our growth as we continue to diversify our sources
of funds and finance our growing fleet.”
About Avolon
Headquartered in Ireland, with offices in the United States, Dubai,
Singapore and China, Avolon provides aircraft leasing and lease
management services. Avolon has an owned, managed and committed fleet of
251 aircraft serving 51 customers in 29 countries as of March 31, 2015.
Avolon is listed on the New York Stock Exchange, under the ticker symbol
AVOL.
Note regarding Forward-Looking Statements
This document includes forward-looking statements, beliefs or opinions,
including statements with respect to Avolon’s business and lessee
relationships, and plans. These forward-looking statements involve known
and unknown risks and uncertainties, many of which are beyond our
control and all of which are based on our management’s current beliefs
and expectations about future events. These risks, uncertainties and
assumptions include, but are not limited to, the following: our ability
to obtain funding and the cost of such funding; general economic and
financial conditions; the financial condition of our lessees; our
ability to enter into definitive contractual documentation in respect of
commitments where we have entered into non-binding letters of intent;
lessee defaults and attempts to repossess aircraft; our ability to
successfully re-lease our existing aircraft and lease new aircraft; our
ability to negotiate and enter into profitable leases; periods of
aircraft oversupply during which lease rates and aircraft values
decline; changes in the appraised value of our aircraft; competition
from other aircraft lessors; and the limited number of aircraft and
engine manufacturers. These and other important factors, including those
discussed under “Item 3. Key Information—Risk Factors” included in our
Annual Report on Form 20-F filed with the U.S. Securities and Exchange
Commission on March 3, 2015, may cause our actual events or results to
differ materially from any those expressed or implied by the
forward-looking statements contained in this document. We expressly
disclaim any obligation or undertaking to update these forward-looking
statements contained in this document unless required to do so by
applicable law.
www.avolon.aero
Copyright Business Wire 2015