Avolon receives US$1.2 billion in fresh equity

Dino D'Amore
By Dino D'Amore January 26, 2016 20:48

Avolon receives US$1.2 billion in fresh equity

Avolon has confirmed that Bohai Leasing has injected an incremental US$1.2 bn of equity capital in the business bringing Avolon’s total available liquidity to US$2 bn.

Avolon is now the core aircraft leasing brand for Bohai Leasing and its parent, HNA Group.

During the fourth quarter, Avolon delivered two aircraft to two airlines in two countries; sold five aircraft sold with letters of intent in place for 16 aircraft disposals in 2016. Also during the quarter, Avolon Capital Partners (ACP) acquired one aircraft on lease bringing the total aircraft under management by ACP to nine.

During the full year in 2015, Avolon delivered 32 new aircraft to 17 airlines in 14 countries; signed new sale and leasebacks for 38 aircraft in 2015 of which 22 deliver in 2016 and 13 in 2017; sold 17 aircraft; and replaced three US$125 million unsecured debt facilities at a margin of 200bps with a single US$525 million unsecured debt facility at a margin of 175bps and an extended availability period until 2019.

Dómhnal Slattery, Avolon CEO, said that he was “excited about the prospects for the business” now that Bohai has committed incremental equity of US$1.2 billion allowing the lessor to “deliver on our ambitious growth objectives”. Slattery’s target is to become a “top three player in the global industry”, which he says he intends to achieve via “a combination of both organic and acquisition growth”.

Dino D'Amore
By Dino D'Amore January 26, 2016 20:48