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Avolon Completes $675MM Debt Facility With Bank of Ireland, Others

April 23, 2015, 07:11 AM
Filed Under: Aircraft Leasing

Avolon, the international aircraft leasing company, today announces the completion of a new $675 million eight-year secured debt facility. The new facility will finance up to 21 aircraft at a margin of 1.65%. The facility is financed by six banks based in Europe and Asia-Pacific.

Highlights include:

  • New $675 million full recourse secured facility with proceeds to be used to finance upcoming deliveries in addition to refinancing existing facilities.
  • Additional financing is incremental to Avolon’s undrawn debt of $920 million at March 31, 2015.
  • Significant flexibility including an availability period of up to 15 months, blind capacity to finance up to three aircraft that have not been identified at the time of entering into the facility and substitution rights to facilitate aircraft trading activity.
  • 8 year facility, at a margin of 1.65%, reflects the financial strength of Avolon and strong demand for the transaction.
  • Facility upsized from original RFP target of $500 million.
  • Mandated lead arrangers are: Bank of Ireland Corporate Banking, The Bank of Tokyo-Mitsubishi UFJ, Ltd., BNP Paribas, Commonwealth Bank of Australia (London Branch), HSBC Bank plc and Natixis SA.

Andy Cronin, Avolon CFO, commented: "The closing of our single largest debt transaction, at a margin of 1.65%, is a milestone for the business and reflects the strength of our credit profile and strong demand from the bank market. This facility is consistent with our stated strategy of funding the business with low cost, long-term debt.

“With this transaction we strengthen our existing banking relationships, add MUFG through The Bank of Tokyo-Mitsubishi UFJ, Ltd. to our lender group and complete our first transaction with Bank of Ireland Corporate Banking as a lead arranger in one of our debt facilities. The strength and depth of our banking relationships have been instrumental in our growth as we continue to diversify our sources of funds and finance our growing fleet.”

Headquartered in Ireland, with offices in the United States, Dubai, Singapore and China, Avolon provides aircraft leasing and lease management services. Avolon has an owned, managed and committed fleet of 251 aircraft serving 51 customers in 29 countries as of March 31, 2015.

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