Avolon announces pricing of $1.1bn private placement
Aircraft leasing giant says it may use some of the proceeds to pay down debt
Avolon earlier this week announced it grew 30 per cent to $717 million (€633 million) last year.
Dublin-based aircraft leasing giant Avolon has announced pricing of $1.1 billion (€976 million) for a private placement that is due to close at the end of the month.
The lessor’s subsidiary, Avolon Holdings Funding Limited, is issuing $800 million of 5.25 per cent notes due in 2024.
Another unit, Park Aerospace Holdings, is issuing $300 million of 5.25 per cent notes maturing in 2022.
The unsecured notes are guaranteed by Avolon with the company saying it may use some of the proceeds to pay down debt.
Avolon earlier this week announced it grew 30 per cent to $717 million last year, with the company indicating it may refinance up to $3 billion of its secured debt in 2019 as it seeks an investment-grade rating.
The company combines its own cash with debt to buy aircraft from manufacturers such as Airbus and Boeing and lease them to airlines around the world. The company had $5.7 billion in cash and credit facilities available to it on December 31st.