Avolon Prices US$1.5 Billion Senior Unsecured Notes Offering
Avolon Holdings Limited (“Avolon”), a premier global aviation finance company, today announced the successful pricing of a private offering (the “Offering”) by its wholly owned subsidiary, Avolon Holdings Funding Limited. The Offering comprises a total principal amount of US$1.5 billion, split evenly between US$750 million of 4.200% senior unsecured notes due 2029 and US$750 million of 4.850% senior unsecured notes due 2033, collectively referred to as the “Notes.” This issuance reflects Avolon’s ongoing strategy to optimize its capital structure and maintain a robust liquidity position in a dynamic aviation finance market.
Full Guarantees by Avolon and Subsidiaries
The Notes issued under this Offering will be fully and unconditionally guaranteed by Avolon, along with guarantees provided by certain of its subsidiaries. This structure reinforces the creditworthiness of the Notes and provides investors with additional security, reflecting Avolon’s strong corporate governance and its commitment to upholding investor confidence. The guarantees are designed to ensure that holders of the Notes will have recourse to the issuer and its subsidiary guarantees in the event of any payment obligations under the Notes.
Expected Closing and Use of Proceeds
The Offering is expected to close on or about 23 February 2026, subject to customary closing conditions. Net proceeds from the issuance will be utilized for general corporate purposes, which may include financing the repurchase of a portion of Avolon’s ordinary shares currently held by Global Aircraft Leasing Co., Ltd. and ORIX Aviation Systems Limited. In addition, proceeds may be allocated to the future repayment of outstanding indebtedness, providing Avolon with greater financial flexibility and an enhanced ability to manage its balance sheet efficiently. This strategic use of proceeds aligns with the company’s objectives to strengthen its capital base while continuing to deliver value to shareholders.
Terms of the Notes and Investment Restrictions
The Notes are structured as senior unsecured debt instruments and are not registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any applicable state securities law. Accordingly, the Notes may not be offered or sold in the United States without registration under the Securities Act or an applicable exemption from registration requirements. Within the United States, the Notes are being offered exclusively to qualified institutional buyers in accordance with Rule 144A under the Securities Act. Outside the United States, the Notes are being offered pursuant to Regulation S under the Securities Act, in compliance with international securities regulations. These measures ensure adherence to applicable securities laws while providing access to a broad base of qualified investors globally.
Investor Considerations and Legal Compliance
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction where such an offer or sale would be unlawful prior to registration, qualification, or exemption under applicable securities laws. Avolon emphasizes that the Notes may only be purchased by eligible investors meeting the criteria set forth by U.S. and international securities regulations. The company continues to maintain rigorous compliance processes to safeguard the integrity of the offering and to provide transparency and confidence to all market participants.
Strategic Implications for Avolon
The US$1.5 billion senior unsecured notes issuance represents a significant milestone in Avolon’s capital strategy, underscoring the company’s leadership position in global aviation finance. By raising capital through the issuance of senior unsecured notes, Avolon is strategically positioning itself to enhance liquidity, fund potential share repurchases, and optimize its debt maturity profile. This transaction demonstrates the company’s proactive approach to capital management, ensuring it remains well-positioned to meet future operational and strategic objectives in a competitive and evolving aviation sector.
Market Reception and Investor Confidence
The pricing of these Notes is a testament to the strong investor confidence in Avolon’s credit profile, financial stability, and strategic direction. The market response to the offering reflects the attractiveness of Avolon’s investment proposition, underpinned by its established track record in aviation finance and consistent delivery of value to investors. The dual maturity structure, featuring 2029 and 2033 Notes, provides investors with flexibility in aligning investment horizons with portfolio strategies while supporting Avolon’s long-term funding objectives.
Through this Offering, Avolon reinforces its commitment to disciplined financial management, strategic capital allocation, and shareholder value creation. The successful pricing and anticipated closing of US$1.5 billion in senior unsecured notes highlight the company’s resilience and adaptability in a complex global aviation finance environment. As Avolon continues to pursue growth opportunities, strengthen its financial foundation, and engage with a diverse investor base, this transaction exemplifies the company’s focus on sustainable and strategic financial planning. Investors and market participants can anticipate that the proceeds from the Notes will be deployed thoughtfully to enhance corporate flexibility, optimize the capital structure, and support Avolon’s continued leadership in the aviation finance industry.
Source Link:https://www.businesswire.com/