Offering rated Investment Grade by Fitch, Moody's, S&P Global KBRA
Size of offering significantly upsized from initial launch size of US$1.8BN
Avolon Holdings Limited ("Avolon"), the international aircraft leasing company, announces the successful pricing of a private offering (the "Offering") by its wholly owned subsidiary, Avolon Holdings Funding Limited, for a principal aggregate amount of US$2.5 billion.
The Offering comprises US$750 million of 3.625% Senior Notes due 2022 (the "2022 Notes") with a yield to maturity of 3.650%; US$1 billion of 3.950% Senior Notes due 2024 (the "2024 Notes") with a yield to maturity of 4.064%; and, US$750 million of 4.375% Senior Notes due 2026 (the "2026 Notes") with a yield to maturity of 4.454%, (together with the 2022 Notes, 2024 Notes, the "Notes"). The Notes will be fully and unconditionally guaranteed by Avolon, and by certain of its subsidiaries.
The Offering was significantly upsized from an initial launch size of US$1.8 billion, reflecting institutional investors' demand. The Offering is expected to close on or about 16 April 2019, subject to customary closing conditions. Proceeds from the Offering will be used for general corporate purposes, including the repayment of outstanding legacy secured debt, consistent with a commitment to reduce the level of secured debt in Avolon's capital structure to 30% of total assets.
Moody's Investors Service ("Moody's") has upgraded Avolon's corporate family and senior unsecured ratings to investment grade (Baa3). Fitch Ratings ("Fitch") and S&P Global Ratings ("S&P Global") have also announced their intention, on successful completion of the Offering, to upgrade Avolon's issuer and senior unsecured debt ratings to investment grade (both BBB-).
Andy Cronin, Avolon CFO, commented: "Today represents a significant milestone for Avolon and marks the delivery of a key corporate objective for 2019. Our achievement of an investment grade rating, ahead of the expected timeframe, reflects the progress we have made to increase the level of unencumbered assets within the business and our metrics as an industry leader in terms of scale, asset quality and airline customer diversification.
An investment grade rating will provide us with even greater financial flexibility and access to a deep pool of capital. The strong market demand for this offering reflects confidence in Avolon's credit profile and the long-term prospects for the business."
This press release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any offering of securities to be made in the United States would be made by means of an offering memorandum that may be obtained by qualified institutional buyers under Rule 144A of the Securities Act and non-US persons (within the meaning of Regulation S under the Securities Act of 1933) from the issuer and will contain detailed information about Avolon and management, as well as financial statements. Avolon does not intend to register any part of the offering in the United States. Any securities that may be offered by Avolon have not been and will not be registered under the Securities Act of 1933 and there shall not be any offering or sale of securities in the United States absent registration or an exemption from registration.
Additionally, this press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
ENDS
About Avolon
Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co., Ltd., a public company listed on the Shenzhen Stock Exchange (SLE: 000415) and 30% owned by ORIX Aviation Systems, a subsidiary of ORIX Corporation which is listed on the Tokyo and New York Stock Exchanges (TSE: 8591; NYSE: IX). Avolon is the world's third largest aircraft leasing business with an owned, managed and committed fleet, as of 31 March 2019 of 951 aircraft.
Website: www.avolon.aero
Twitter: @avolon_aero
Note Regarding Forward-Looking Statements
This press release includes forward-looking statements, beliefs or opinions, including statements with respect to Avolon's business, financial condition, results of operations and plans. These forward-looking statements involve known and unknown risks and uncertainties, many of which are beyond our control and all of which are based on our management's current beliefs and expectations about future events. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "believe," "expects," "may," "will," "could," "should," "shall," "risk," "intends," "estimates," "aims," "plans," "predicts," "continues," "assumes," "positioned" or "anticipates" or the negative thereof, other variations thereon or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. Forward-looking statements may and often do differ materially from actual results. No assurance can be given that such future results will be achieved, that any private placement of senior unsecured notes will occur or, regardless of whether a private placement of senior unsecured notes is consummated, that any ratings agencies will upgrade Avolon to investment grade. Avolon does not intend, and undertakes no duty, to update any information contained herein to reflect future events or circumstances, except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190411005891/en/
Contacts:
Ross O'Connor
Head of Investor Relations
roconnor@avolon.aero
T: +353 1 231 5818
Emmet Moloney
Head of Communication
emoloney@avolon.aero
T: +353 1 556 4429
Jonathan Neilan
FTI Consulting
avolon@fticonsulting.com
M: +353 86 231 4135
