Avolon raises US$465m of additional debt finance

Dublin, New York, Hong Kong & Shanghai | 25 January, 2011: Avolon, the aircraft leasing group, today announces an additional capital raising of US$465m, bringing the total value of funds raised since May 2010 to in excess of US$2.5 billion.

The capital raising is the third announced by Avolon in 8 months and consists of a fully underwritten long-term debt facility (including warehouse capacity) from a consortium of three leading US banks. The transaction was led and structured by Wells Fargo Securities and the consortium includes Citi and Morgan Stanley. It is intended that proceeds will be used to fund Avolon’s growing aircraft fleet.

Highlights

-      US$465 million debt financing provided by three leading US banks: Wells Fargo Securities, Citi and Morgan Stanley

-      Facility provides term financing for a number of aircraft, as well as additional warehouse capacity, increasing Avolon’s underwriting capacity

-      US$2.5 billion of capital raised in under a year in three separate capital raisings, including US$1 billion of equity

-        Additional financing will support the continued growth of the Avolon fleet which currently stands at over 60 committed aircraft, valued at over  US$2.8billion

Capital Raising

The US$465 million additional capital raising brings the total capital raised by Avolon, since launch in May 2010, to over US$2.5 billion. This comprises US$1 billion of equity and over US$1.5 billion of debt. This recent capital raising is from a consortium of 3 leading US banks. The transaction was led and structured by Wells Fargo Securities and the consortium includes Citi and Morgan Stanley.

Avolon has already raised over US$1 billion in debt financing from a range of leading European aviation finance banks including DVB, Nord LB, KfW IPEX-Bank, UBS, Deutsche Bank, BNP Paribas and Credit Agricole CIB. This initial financing included a US$400 million warehouse facility which was the first facility of this type to be successfully executed in three years.

Avolon Chief Financial Officer, Andy Cronin, commented:

“We are pleased to announce a further capital raising which brings our total capital raised to over US$2.5 billion. This debt raising is an important step in broadening our Lender base, introducing three new, US based, Lenders to Avolon. These significant commitments are an endorsement of the Avolon business model, the industry-leading team we have assembled and the strength of the portfolio we are building. International capital is accessible to prudent, well-managed businesses, with credible long-term growth prospects.”

Head of Commercial Operating Asset Finance, Jessica Gray, Wells Fargo Securities, added:

“We are delighted to announce our partnership with Avolon and to provide capital to a business that has compelling growth prospects. This commitment reflects our confidence in the Avolon team, the strength and reputation of their investor group and the quality of Avolon’s growing aircraft portfolio. We look forward to continuing to work with the Avolon team as the business grows.”