Avolon prices US$1.5 billion bond offering
Aircraft leasing firm will use net proceeds for general corporate purposes
20 Jan 2021 | Michael Marray

Aircraft leasing company Avolon Holdings has announced the successful pricing of a $1.5 billion bond offering by its wholly owned subsidiary, Avolon Holdings Funding Limited.

The offering, priced on January 13, comprises of US$750 million of 2.125% senior unsecured notes due 2026 and US$750 million of 2.75% senior unsecured notes due 2028. They will be fully guaranteed by Avolon and several of its subsidiaries.

Avolon is 70% owned by an indirect subsidiary of Bohai Leasing Co, which is listed on the Shenzhen Stock Exchange, and 30% owned by Orix Aviation Systems, a subsidiary of Orix Corporation which is listed on the Tokyo and New York stock exchanges.

The notes were privately placed to qualified institutional buyers in the United States under Rule 144A, and globally under Regulation S. Net proceeds from the offering will be used for general corporate purposes, which may include the future repayment of outstanding debt.

Avolon has offices in the US, Dubai, Singapore, Hong Kong and Shanghai. It is the world’s third largest aircraft leasing business, with an owned, managed and committed fleet of 842 aircraft as of December 2020.

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