Avolon set for ratings upgrade after $1.8bn private offering

Ratings agencies set to upgrade Avolon’s issuer and senior unsecured debt ratings

Avolon chief executive Dómhnal Slattery. The company is the world’s third-largest aircraft leasing business

Avolon chief executive Dómhnal Slattery. The company is the world’s third-largest aircraft leasing business

 

Irish aircraft lessor Avolon has announced the launch of a $1.8 billion private offering, which when completed is expected to lead to a rating upgrade from Fitch, Moody’s and S&P.

The ratings agencies have all signalled their intention to upgrade Avolon’s issuer and senior unsecured debt ratings to investment grade.

This has been a key objective of the company and Avolon said it had achieved this ahead of time.

Proceeds from the new offering will be used for general corporate purposes and 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 per cent of total assets.

News of the private offering comes just weeks after the lessor announced plans to borrow $500 million, up from a previously guided $300 million.

Headquartered in Dublin, Avolon is the world’s third-largest aircraft leasing business with an owned, managed and committed fleet of 951 aircraft.

Founded by Dómhnal Slattery, Avolon is 70 per cent owned by Bohai Leasing with Orix holding the remaining 30 per cent stake.