Avolon completes new $675 million 8 year debt facility

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By TESTCustomwebLP TESTCustomwebLP April 23, 2015 16:51

Avolon completes new $675 million 8 year debt facility

Avolon has completed a new $675 million eight-year secured debt facility. The new facility will finance up to 21 aircraft at a margin of 1.65%. The facility, which was upsized from original RFP target of $500 million, is financed by six banks based in Europe and Asia-Pacific.

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, says: “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.”

Proceeds from the new $675 million full recourse secured facility will be used to finance upcoming deliveries in addition to refinancing existing facilities.

The additional financing is incremental to Avolon’s undrawn debt of $920 million at March 31, 2015.

The new facility gives Avolon 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.

Cronin added: “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.”

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By TESTCustomwebLP TESTCustomwebLP April 23, 2015 16:51