Avation secures $85 million portfolio financing facility

Avation signed a term loan A-style $85 million expandable portfolio financing facility in collaboration with a major international bank. 

This facility will initially support the refinancing of select aircraft in Avation's fleet, allowing for the financing of additional aircraft. 

The company said the facility enhances the company's cash flow and strengthens its financial position. Funds are expected to be drawn in the coming weeks, the company said on February 14, 2025. 

“This landmark term loan A facility is a positive step forward for Avation, offering the flexibility to add additional aircraft over time," said Avation executive chairman Jeff Chatfield. "The facility’s interest coupon is substantially lower than the market for unsecured bond financing. Once fully drawn, this facility has the potential to improve the Company’s cash flow by up to $400,000 per month.”

Avation was advised on the transaction by Morgan Lewis Stamford, based in Singapore, and was led by James Bradley, along with senior associate Ivan Qiu and associate Nandana Marur.