Avolon raises $1.5 billion through senior unsecured notes offering

In Dublin on December 3, 2024, Avolon Holdings Limited announced the pricing of a significant private offering. This operation was conducted by its wholly owned subsidiary, Avolon Holdings Funding Limited. The total principal amount of the offering is US$1.5 billion, which is structured as senior unsecured notes. This financial strategy comprises US$850 million of 4.950% senior unsecured notes due in 2028 along with US$650 million of 5.150% senior unsecured notes that are set to mature in 2030. Importantly, these notes will be fully and unconditionally guaranteed by Avolon as well as certain subsidiaries of the firm. The closing of this offering is anticipated to occur on or about December 12, 2024, contingent upon standard closing conditions being met. Avolon intends to utilize the net proceeds generated from this offering for a variety of general corporate purposes. These purposes may include the potential repayment of other debts. However, it is significant to note that the notes involved in this offering will not be registered under the U.S. Securities Act of 1933 or any state securities law. As a result, they cannot be offered or sold within the United States unless they are registered or fall under an exemption from registration according to the pertinent laws. In the United States, the notes will only be available to qualified institutional buyers under Rule 144A of the Securities Act, and internationally, they will be offered under Regulation S of the Securities Act. Avolon’s announcement emphasizes its robust financial positioning in the market. The company boasts long-term customer relationships and a collaborative approach to business which is reflected in their sustained operations across diverse markets. Avolon collaborates with 141 airlines across 62 countries and as of September 30, 2024, they report managing a fleet comprised of 1,137 aircraft. The offering represents another strategic move in enhancing its balance sheet, aiming for diversified risk and efficient capital management. In conclusion, Avolon's recent offering is not merely a funding operation but part of its wider strategy to maintain a strong financial foundation while planning for future business expectations. This offering is expected to bolster their capacity to navigate through financial uncertainties and operational demands while fulfilling investor obligations effectively.