Avolon raises $750 million with new unsecured credit facility

Avolon has raised $750 million in a new unsecured credit facility with a syndicate of seven banks predominantly in the Middle East and India. The floating rate facility, which has a three-year tenor with options for extensions up to five years, is priced at SOFR +135 basis points. The proceeds will be used for general corporate purposes. ""This $750 million facility further diversifies our access to capital and forges new banking relationships in the Middle East and India,"" said Avolon CFO Ross O'Connor. ""Deepening our sources of liquidity ensures we can continue to capitalise on attractive market dynamics."" JP Morgan and Emirates NBD acted as joint bookrunners on this transaction. “As banks in the Middle East and India deepen their understanding of the lessor business model and look to deploy capital beyond domestic markets, we anticipate they will be a growing source of funding for aviation businesses with a strong track record,” commented JP Morgan head of CEEMA loans & structured credit Puja Turner. Emirates NBD head of GRE and aviation desk Aamir Mansoor added: “As aviation continues to be a vital driver of economic expansion, we foresee significant opportunities for the sector in the coming years.” Through this facility, coupled with a range of other private and public market sources, Avolon has raised over $3.4bn in 2024 so far. The lessor's available liquidity as of March 31, 2024, was $6.6bn with a net debt to equity ratio of 2.2x. Avolon had priced a $1bn fixed five-year senior unsecured offering priced at US Treasuries at +143bps in early May.