Avation gets consents to extend maturity of $350 million 6½% notes

By Taylor Fox

New York, March 3 – Avation plc announced it received the required consents from holders of the 6½% senior notes due May 2021 issued by Avation Capital SA, according to a news release.

As of the 5 p.m. ET March 2 early consent deadline, consents for $342,642,000 of the notes, or 100% of the principal amount outstanding, were received, and the extraordinary resolution has been passed.

Only $342,642,000 principal amount is deemed outstanding for the purposes of the consent solicitation, since $7,358,000 of the $350 million aggregate principal amount outstanding is held in treasury, the company noted.

As announced on Feb. 9, the company had reached agreement with 76% of the holders of the 6½% notes to extend the maturity date by 5.5 years to Oct. 31, 2026.

The consent solicitation formally began on Feb. 23 and will expire on March 12.

The company offered an early consent fee of up to 75 basis points, including 50 bps up front and a subsequent 25 bps payable later, and a late consent fee of 25 bps.

Payment of the 50 bps consent fee for early voters and the 25 bps to late voters will be made on March 16.

D.F. King Ltd. (+44 20 7920 9700, +852 3953 7208, 212 269-5550, 866 356-7813; avation@dfking.com) is the tabulation and solicitation agent.

Other details

As previously reported, other terms of the amendment include a cash coupon to include an additional 2½% payment-in-kind or an additional 1¾% cash coupon.

Bondholders are to receive 6 million warrants to subscribe for ordinary shares exercisable to Oct. 31, 2026 at an exercise price of 114.5p per share.

The notes will be callable at 103 for a year and a half, then at 106 until Oct. 31, 2024, at 104.5 until Oct. 31, 2025 and then at par after that.

In addition, there will be “general strengthening” of the notes’ covenants and additional guarantees of security.

The transaction is aimed at improving the company’s capital structure as it grapples with the business impact of the Covid-19 pandemic, the company previously said.

PJT Partners is adviser to the company, and Perella Weinberg UK Ltd. is adviser to the bondholder committee.

Aviation is a commercial passenger aircraft leasing company based in Singapore.

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