Avolon seeks to make early repayment of $500m in debt

Irish company is offering to buy back bonds that are due for repayment in 2022 and 2023

Avolon chief executive Dómhnal Slattery at the  opening of its global headquarters in Ballsbridge, Dublin,  in 2018 with then taoiseach Leo Varadkar. Photograph: Robbie Reynolds

Avolon chief executive Dómhnal Slattery at the opening of its global headquarters in Ballsbridge, Dublin, in 2018 with then taoiseach Leo Varadkar. Photograph: Robbie Reynolds

 

Aircraft lessor Avolon plans to repay $500 million (€422m) worth of its debt ahead of time, the Irish group confirmed on Monday.

Avolon buys aircraft from manufacturers Airbus and Boeing, and then leases them to airlines around the world.

The Dublin-based company is offering to buy back bonds totalling $500 million that are due for repayment in 2022 and 2023.

Avolon had $5.7 billion in cash at the end of September, its third quarter, according to its latest results.

The company is using some of this to repay debts early to strengthen its balance sheet.

Avolon’s net debt is $17.4 billion, with repayment dates stretching from now until 2031. Its total assets at the end of September were more than $31 billion.

A formal notice from the company said it was offering to buy back some of the bonds that it has issued, including $350 million repayable in 2022 at 5.25 per cent, $100 million due in 2022 at 3.625 per cent, and $50 million due in 2023 at 5.5 per cent.