Avolon Holdings Limited (“Avolon”), the international aircraft leasing company, announces the successful re-pricing of US$850 million of its senior secured US$2.58 billion Term Loan B facility (the “Facility”).
Avolon has repriced the US$850 million tranche at LIBOR plus 1.50% and is subject to an Original Issue Discount (OID) of 99.75. The maturity of this US$850 million tranche has been extended to 2027. In conjunction with this repricing, Avolon has also repaid US$300 million of the original Facility, reducing the outstanding balance to US$2.28 billion.
The outstanding balance of the Facility has a maturity date of January 2025 and was repriced at LIBOR plus 1.75% with a LIBOR floor of 0.75% in Q2 2019.
Andy Cronin, Avolon Chief Financial Officer, commented: “This successful repricing is another step in reducing Avolon’s cost of funds. The repricing at LIBOR plus 1.50% represents a new sector low for a Term Loan B Facility. We have now reduced the overall size of the facility by over US$3 billion, supporting our objective of increasing unencumbered assets within our capital structure and securing this interest margin on the loan – one of the lowest in the Term Loan B market – highlights the level of investor confidence in our business.”
Avolon will issue 2019 Full Year Results next Wednesday, 12 February.