Avolon lifts term B-5 to $675 million, firms at Libor plus 250 bps

By Sara Rosenberg

New York, Nov. 20 – Avolon upsized its term loan B-5 due December 2027 to $675 million from $500 million and finalized pricing at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

The term loan B-5 still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

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.

Recommitments were scheduled to be due at 3 p.m. ET on Friday, the source added.

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

With this transaction, the company is amending 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 amendment also provides 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.

Avolon is a Dublin-based aircraft lessor.

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