Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company announces today the successful pricing and full subscription of its offering of US$300 million aggregate principal amount of its 6.5% senior notes due 2021 (the "Notes") under the Company's global medium term note program ("GMTN Programme").
The Notes will be issued by Avation Capital S.A., a wholly owned subsidiary of the Company, and be guaranteed by AVAP. Closing and funding are expected to take place on or about May 9, 2018, subject to customary conditions precedent for similar transactions. The Company intends to use the net proceeds of the offering to call and repay US$150 million of 7.5% senior notes due 2020 and to repay certain senior and junior secured loans.
The Notes will be listed on the SGX-ST and will be rated B by S&P Global Ratings and BB- by Fitch Ratings
Wells Fargo Securities, LLC along with BOC International and Goldman Sachs (Asia) L.L.C. acted as bookrunners with R.W. Pressprich & Co., as co-manager to the issue.
Jeff Chatfield, Executive Chairman, said: "We are pleased to have priced the Series Two Notes issue under our GMTN Programme, amid strong demand. We also note the improved credit rating for the Notes from Fitch of BB- and improved corporate credit rating from Standard & Poor's of B (positive outlook), both of which have been published recently. We believe this issue is an important step in the evolution of the Company's capital structure, which provides immediately improved overall borrowing costs and a longer duration for unsecured corporate bonds."