Avolon launches $500 million term loan B-5 at Libor plus 250-275 bps

By Sara Rosenberg

New York, Nov. 17 – Avolon held a lender call at 1 p.m. ET on Tuesday to launch a $500 million term loan B-5 due December 2027 that is talked at Libor plus 250 basis points to 275 bps with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan B-5 has 101 soft call protection for six months, the source said.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Agricole, MUFG, Barclays, Fifth Third, ING, KeyBanc Capital Markets, Mizuho, Natixis, Bank of Nova Scotia, Societe Generale, Truist, NatWest and Wells Fargo Securities LLC are the bookrunners on the deal.

Proceeds will be used for general corporate purposes, including repayment of secured debt.

In addition, the company launched an amendment to its existing credit agreement to decrease the loan-to-value maintenance covenant level threshold to 75% for two years after close, after which point it will revert to the current 80% level, the source said.

The amendment would also provide 45 days from the term loan B-5 drawing date to add additional aircraft to Avolon’s collateral pool. If more than 45 days are required to add additional aircraft, cash can be used as collateral in calculating the loan-to-value ratio.

As part of the amendment, Avolon’s term loan B-3 and term loan B-4 would get 101 soft call protection for six months after close.

Amendment signatures are due at 5 p.m. ET on Thursday and term loan B-5 commitments are due at 2 p.m. ET on Friday, the source added.

Avolon is an Ireland-based aircraft lessor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.