Singapore’s Avation gives results in tender offer for 2026 notes

By Mary-Katherine Stinson

Lexington, Ky., Feb. 21 – Avation plc announced Avation Capital SA’s final results in its extended offer to purchase its 9%/8¼% senior PIK toggle notes maturing Oct. 31, 2026, according to multiple notices.

As of the expiration date of 11:59 p.m. ET on Feb. 17, $7,055,202 of the notes have been tendered.

The company stated it will not extend the offer, as it believes that the outcome is satisfactory based on the current market conditions.

As previously reported, the company will pay a total consideration of $860 for each $1,000 principal amount of notes validly tendered. Included in the total consideration is an early participation amount of $50 for each $1,000 principal amount, which was previously extended to correspond with the expiration of the offer.

Unpaid cash interest on the notes from the last interest payment will also be paid.

Settlement is planned for Feb. 23.

Tendered notes will be canceled following settlement.

The early participation date and expiration date of the offer had previously been extended to 11:59 p.m. ET on Feb. 9 and Jan. 26.

Previous extensions pushed the expiration to Dec. 15 and Dec. 1. It was originally Nov. 17.

The withdrawal deadline had expired on Nov. 1 and was never extended. The long stop date remained Aug. 9.

Previous amendments to the offer had increased the tender cap to up to $100 million and set the total consideration at a fixed price that sweetens the deal from the original proposed range of the modified Dutch auction.

Previously, the amount was to be determined by a modified Dutch auction to be within the range of $710 to $810 per $1,000 principal amount.

The offer was launched Oct. 19.

The tender offer was subject to certain conditions, including a financing condition. The company had stated that it could extend the expiration date for up to 12 months following the initial Nov. 17 expiration date.

The notes were originally issued under the company’s $1 billion global medium-term note program and guaranteed by Avation plc and Avation Group (S) Pte. Ltd. There is $355,605,435 aggregate principal amount of the notes outstanding.

Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) is acting as the dealer manager.

Global Bondholder Services Corp. (212 430-3774, 855 654-2015, contact@gbsc-usa.com) is the information agent and tender agent.

Avation is an aircraft leasing company based in Singapore.

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