Azorra Finance has marketed its $500 million unsecured notes due 2031, guaranteed by its parent Azorra Aviation Holdings.
Both Fitch and S&P Global expect to rate the notes ‘BB-’.
S&P said it expects the proceeds to be used to repay outstanding drawings on its revolving credit facility and to finance aircraft acquisitions. This would include its recently disclosed acquisition of 49 Embraer E-Jets and two GE CF-34 engines from Dubai Aerospace Enterprise (DAE) in May.
“We view positively the increase in unsecured debt as a portion of funding,” said S&P. “Having fewer unencumbered assets aids financial flexibility, since lessors with a sizable, unencumbered asset base can use the assets as collateral for secured borrowings if access to unsecured borrowing becomes unavailable.”
In January, Azorra had finalised a $190 million financing agreement with Brazilian Development Bank (BNDES) to fund up to eight E2 jets.
During Embraer's press conference at the Paris Air Show, the Brazilian manufacturer said that South African regional airline Airlink had selected 10 new E195-E2 jets, with the aircraft to be leased from Azorra. Embraer said the aircraft will allow the company to further grow across Africa. Azorra CEO and founder John Evans confirmed that first delivery would commence either late September or early October.