Avolon finalizes OIDs on $2.33 billion term loan B-6

By Sara Rosenberg

New York, Dec. 8 – Avolon firmed the original issue discount on its $2.334 billion senior secured term loan B-6 due June 22, 2028 at 99.75 for existing term loan B-5 and new money lenders, the tight end of the 99.5 to 99.75 talk, and at par for existing term loan B-6 lenders, the tight end of the 99.75 to par talk, according to a market source.

Pricing on the term loan B-6 remained at SOFR plus 200 basis points with a 0.5% floor.

The term loan B-6 still has 101 soft call protection for six months.

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.

Proceeds will be used to consolidate the company’s existing roughly $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.

Closing is expected on Dec. 27.

Avolon is a Dublin-based aircraft lessor.

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