Avolon prices investment grade rated $2.5bn senior notes offering

Avolon has priced its $2.5bn private offering by its wholly owned subsidiary, Avolon Holdings Funding Limited. The offering comprises $750 million of 3.625% three-year senior notes with a yield to maturity of 3.650%; $1 billion of 3.950% five-year senior notes with a yield to maturity of 4.064%; and, $750 million of 4.375% seven-year senior notes with a yield to maturity of 4.454%. The notes will be fully and unconditionally guaranteed by Avolon. The offering was significantly upsized from an initial launch size of $1.8 billion, reflecting institutional investors’ demand, says the lessor. The offering is expected to close on or