Avolon Holdings has established a US$1.5 billion commercial paper programme through its wholly owned subsidiary, Avolon Aerospace Leasing Limited (AALL), to diversify its funding sources and strengthen access to short-term capital.
Under the programme, AALL may issue unsecured commercial paper notes with a total outstanding principal amount of up to US$1.5 billion. The notes will be fully and unconditionally guaranteed by Avolon and certain subsidiaries and will rank equally with the group’s other unsecured and unsubordinated debt.
Avolon said the programme will provide a flexible and cost-effective source of short-term funding alongside its existing revolving credit facilities. Proceeds may be used for general corporate purposes, including aircraft acquisitions and the repayment of existing debt.
The notes and related guarantees will not be registered under the US Securities Act and may only be offered or sold in the United States under an applicable exemption from registration requirements.
