Avolon Holdings has established a US$1.5 billion commercial paper programme to expand its funding options and enhance financial flexibility as the global aircraft lessor continues to support fleet growth and investment activities.
The programme has been launched through Avolon Aerospace Leasing Limited (AALL), the company’s wholly owned subsidiary, allowing it to issue short-term, unsecured commercial paper notes with an aggregate outstanding principal amount of up to US$1.5 billion.
The notes will be issued under the exemption from registration provided by Section 4(a)(2) of the U.S. Securities Act of 1933. They will be fully and unconditionally guaranteed by Avolon and certain of its subsidiaries, with both the notes and guarantees ranking at least pari passu with the group’s other unsecured and unsubordinated debt obligations.
According to Avolon, the programme will further diversify its funding sources while providing a flexible and cost-effective source of short-term capital alongside its existing revolving credit facilities.
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The company said proceeds from future issuances under the programme will be used for general corporate purposes, including financing aircraft acquisitions and refinancing existing debt.
Ross O’Connor, Chief Financial Officer of Avolon, said the initiative represents another milestone in the company’s long-term funding strategy.
“The establishment of this commercial paper programme marks another important milestone in the continued evolution of Avolon’s funding and liquidity strategy. It provides additional flexibility to optimise our funding mix, supported by our investment-grade credit ratings, strong liquidity position and robust balance sheet, whilst broadening our investor base and diversification,” O’Connor said.
Avolon said the commercial paper programme complements its existing financing framework and reinforces its commitment to maintaining a diversified capital structure as it continues to grow its global aircraft leasing business.
The company noted that the notes and related guarantees have not been registered under the U.S. Securities Act and may not be offered or sold in the United States unless registered or exempt from registration requirements. The announcement does not constitute an offer to sell or solicit the purchase of securities under the programme.
