Dublin | 4 October 2018: Avolon, the international aircraft leasing company, issues an update for the third quarter of 2018 (‘Q3’).



  • Owned and managed fleet of 571 aircraft at end Q3, with total orders and commitments for 319 new technology aircraft;

  • Executed a total of 39 lease transactions, comprising new aircraft leases, second leases and lease extensions;

  • Delivered a total of 14 aircraft to 8 customers, including 2 transitions;

  • Sold 16 aircraft, including the sale of 4 aircraft to Jade Aviation, Avolon’s joint venture with Cinda;

  • Fleet utilization for the quarter was 100%;

  • Average owned fleet age of 5.1 years with average lease term remaining of 6.8 years at end of Q3; and

  • Total customer base of 156 airlines in 64 countries at the end of the quarter.


ORIX Corporation (“ORIX”), through its wholly owned subsidiary ORIX Aviation Systems (“ORIX Aviation”), entered into an agreement to acquire a 30% stake in Avolon from Bohai Capital for US$2.2 billion, based on 31 March 2018 NAV, implying an Avolon enterprise value of US$23.7 billion. This acquisition, scheduled to complete in Q4 2018, will:

· Diversify and strengthen the financial profile of Avolon's shareholder base;

· Accelerate Avolon’s path to Investment Grade, with Fitch and Moody’s having placed Avolon on positive outlook and under review for upgrade respectively; and

· Implement a governance structure with enhanced protections for the minority shareholder and indirectly for debt investors.

Paid a previously announced dividend of US$240 million in Q3 2018, to facilitate the repayment of all outstanding intercompany loans between Avolon and its parent Bohai, as part of the pre-closing sequence for ORIX’s acquisition of a 30% minority interest in Avolon;

Raised incremental new debt capital of US$2.1 billion during the quarter, including:

· The upsizing of Avolon’s unsecured revolving credit facility by US$350 million to US$1.8 billion; and

· The successful closing of a private offering of US$1 billion senior unsecured notes, which was upsized from US$750 million due to significant investor demand.

Repaid US$365 million TLB-1, which had a maturity of April 2020, as part of a publicly stated objective to increase the level of unencumbered assets within the Avolon portfolio.