US$1.2bn fresh equity injection into Avolon

Avolon, the international aircraft leasing company, issued an update for the 2015 fourth quarter (‘Q4’) and full year and announced that Bohai Leasing is investing an incremental US$1.2bn of equity capital in the business bringing Avolon’s total available liquidity to US$2bn to accelerate growth in 2016 and beyond. Avolon begins 2016 as a wholly-owned, indirect subsidiary of Bohai Leasing, a global leader in transportation (container and aircraft) leasing and enters an exciting phase of growth. Following the completion of the merger on January 8th, 2016, Avolon assumed management of Hong Kong Aviation Capital (HKAC) with a total fleet of over 400 aircraft. Avolon is now the core aircraft leasing brand for Bohai Leasing and its parent, HNA Group. Together with HNA Group and Bohai’s other aircraft leasing interests, Avolon is the world’s fourth largest aircraft leasing business by asset value. Transactions in the 4th quarter inlcuded the delivery of 2 aircraft to 2 airlines in 2 countries, the sale of 5 aircraft with letters of intent in place for 16 aircraft disposals in 2016. Furthermore Avolon Capital Partners (ACP) acquired one aircraft on lease during the 4th quarter, bringing the total aircraft under management by ACP to 9. Transaction for the full year 2015 included: the delivery of 32 new aircraft to 17 airlines in 14 countries, the signing of new sale and leasebacks for 38 aircraft, of which 22 deliver in 2016 and 13 in 2017. In total ACP sold 17 aircraft in 2015.
Additionally the company replaced three US$125m unsecured debt facilities at a margin of 200bps with a single US$525m unsecured debt facility at a margin of 175bps and an extended availability period until 2019.