11 Apr 2019

Avolon announces pricing of Investment Grade rated US$2.5 billion Senior Notes offering


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

Dublin | 11 April, 2019:: 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 legacxy 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

For Further Information Please Contact

David Breen / Joe Brennan
Avolon Investor Relations
[email protected]
T: +353 1 231 5800

Douglas Keatinge
Avolon Head of Communications
[email protected]
T: +353 86 037 4163

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