Avolon provides a first quarter update

Lauren Eldershaw
By Lauren Eldershaw April 4, 2019 15:18

Avolon provides a first quarter update

For the first quarter of 2019, Avolon executed a total of eight lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions. Avolon delivered a total of 12 new aircraft to nine customers and transitioned four aircraft to follow-on lessees, during the reporting period. Avolon also sold 20 aircraft during the quarter including the sale of 10 regional aircraft.

As of the end of the first quarter, Avolon has an owned and managed fleet of 553 aircraft, with total orders and commitments for 398 new technology aircraft.

This quarter, Avolon closed a private offering of $1.1 billion of senior unsecured notes, upsized from an initial target size of $750 million due to “significant investor demand”.

The lessor also closed its $500 million three-year unsecured term loan facility which was upsized by over 60% based on the original launch size of US$300 million. Avolon also upsized its unsecured revolving credit facility by $125 million bringing the total facility size to over $2.3 billion.

Avolon reports that it has “continued progress towards our strategic objective of achieving an investment grade credit rating with receipt of positive updates from 3 rating agencies”.

S&P upgraded its rating on Avolon’s senior unsecured notes to BB+; Fitch upgrade of Avolon’s corporate credit rating to BB+ with a Positive Outlook; and Moody’s update of its outlook on Avolon’s corporate credit rating to Ba1 with a Positive Outlook.

Lauren Eldershaw
By Lauren Eldershaw April 4, 2019 15:18