Photo: Blue Stahli Luân
Avolon, the international aircraft leasing company, has announced the completion of a new $675m 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, and proceeds are to be used to finance upcoming deliveries in addition to refinancing existing facilities. Additional financing is incremental to Avolon’s undrawn debt of $920m 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.
Headquartered in Ireland, with offices in the US, Dubai, Singapore and China, Avolon has an owned, managed and committed fleet of 251 aircraft serving 51 customers in 29 countries as of March 31st, 2015.
The eight-year facility, at a margin of 1.65%, reflects the financial strength of Avolon and strong demand for the transaction.
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.”
Cronin added: “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.”