Inaugural Unsecured Term Loan Issuance Significantly Oversubscribed

Avolon Holdings Limited (“Avolon”), the international aircraft leasing company, today announces the closing of its inaugural US$500 million three year unsecured term loan facility. The transaction was oversubscribed and upsized by over 60% based on the original launch size of US$300 million. Avolon intends to use the net proceeds from the financing for general corporate purposes, which may include the future repayment of outstanding secured indebtedness.

The financing was led by Natixis and Sumitomo Mitsui Trust Bank, Limited who acted as joint mandated lead arrangers, underwriters and bookrunners for the deal. Lenders to the facility consist of a group of 13 international banks from across Asia, Europe and the United States.

Dave Murray, Avolon Managing Director, Capital Markets, commented: “The closing of this inaugural unsecured term loan facility for Avolon in the international bank market further diversifies our sources of unsecured funding and marks an important step in our continued progress towards securing an Investment Grade ratings profile. We are also pleased with the positive market reaction to the launch which was oversubscribed, resulting in the significant increase in the size of the offering. This strong support reflects Avolon’s strong track record of delivering consistent returns; strong cashflows and credit metrics; and proven management capability.”

Gareth John, Natixis' Global Head of Aviation, commented: "We are very proud to have supported Avolon in this important unsecured term loan facility, contributing to Avolon’s goal of attaining an IG ratings profile. The closing of this transaction highlights our expertise and solutions-focused approach in arranging aviation financing, as well as supporting a longstanding and strategic client of Natixis.”

Clifford Chance acted as lender’s counsel while Milbank acted as borrower counsel on behalf of Avolon.