Avolon reduces pricing on $800m Term Loan B facility

Aaron Woolner
By Aaron Woolner February 7, 2020 16:09

Avolon reduces pricing on $800m Term Loan B facility

Avolon has re-priced $850 million of its senior secured $2.58 billion Term Loan B facility at LIBOR plus 1.50% and is subject to an original issue discount (OID) of 99.75. The maturity of this $850 million tranche has been extended to 2027. In conjunction with this repricing, Avolon will also repay $300 million of the original facility, reducing the outstanding balance to $2.28 billion.

The outstanding balance of the facility has a maturity date of January 2025 and was repriced at LIBOR plus 1.75% with a LIBOR floor of 0.75% in Q2 2019.

Andy Cronin, Avolon Chief Financial Officer, commented: “This successful repricing is another step in reducing Avolon’s cost of funds. The repricing at LIBOR plus 1.50% represents a new sector low for a Term Loan B Facility. We have now reduced the overall size of the facility by over US$3 billion, supporting our objective of increasing unencumbered assets within our capital structure and securing this interest margin on the loan – one of the lowest in the Term Loan B market – highlights the level of investor confidence in our business.”

Aaron Woolner
By Aaron Woolner February 7, 2020 16:09