Avolon has priced its previously disclosed bond buyback offer on June 3, 2025. The offer was upsized from $800 million to $1.2bn earlier the same day, following strong investor participation. As of the early tender deadline on June 2, around $1.78bn of the notes were validly tendered.
The repurchase notes have all been priced at a fixed spread of US Treasuries plus 80 basis points, and a tender offer yield of 4.753%.
The repurchase notes are listed in order of acceptance priority.
“Because the aggregate purchase price of the notes validly tendered and not validly withdrawn on June 2, 2025, exceeds the maximum tender cap, we will accept for purchase such notes in accordance with the acceptance priority levels, subject to proration factors,” said Avolon in its statement.
The top priority notes are the 4.250% senior notes due April 15, 2026, with $634.95 million to be accepted and cancelled. The notes have been fully accepted.
The second priority tier is the 4.375% senior notes due May 1, 2026, with $298.07 million to be accepted and cancelled. The notes have been fully accepted.
The third tier priority notes are the 4.250% senior notes due 2026, with $634.95 million to be accepted and cancelled. The notes have been partially accepted at a proration factor of 60%.
With the maximum tender cap exceeded, the company has not accepted the fourth set of notes, the 5.500% senior notes due January 15, 2026.
The offer will expire on June 17, 2025.
Deutsche Bank Securities and Lloyds Securities are serving as the lead dealer managers. Huntington Securities, ING Financial Markets, KeyBanc Capital Markets are serving as co-dealer managers.