Avolon launches $2.33 billion term loan B-6 at SOFR plus 200 bps

By Sara Rosenberg

New York, Dec. 4 – Avolon was scheduled to hold a lender call at noon ET on Monday to launch a $2.334 billion term loan B-6 due June 22, 2028 that is talked at SOFR plus 200 basis points with a 0.5% floor and 101 soft call protection for six months, according to a market source.

Proceeds will be used to consolidate the company’s existing $656 million term loan B-5 due Dec. 1, 2027 and $1.678 billion term loan B-6 due June 22, 2028 into one tranche and reprice the debt from current pricing of SOFR plus 225 bps with a 0.5% floor on the B-5 tranche and SOFR plus 250 bps with a 0.5% floor on the B-6 tranche.

The consolidated term loan B-6 is talked with an original issue discount of 99.5 to 99.75 for existing term loan B-5 lenders and with an original issue discount of 99.75 to par for existing term loan B-6 lenders, the source said.

Deutsche Bank Securities Inc., Barclays, BNP Paribas Securities Corp., Fifth Third, Mizuho, Morgan Stanley Senior Funding Inc., MUFG and Truist Securities are the joint lead arrangers on the deal.

Commitments are due at noon ET on Thursday, the source added.

Avolon is a Dublin-based aircraft lessor.

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