Avolon tightens talk on $3 billion two-part notes offer, shifts proceeds to shorter maturity notes

By Paul A. Harris

Portland, Ore., Jan. 19 – Avolon Holdings Ltd. tightened talk in its $3 billion two-part offering of non-callable senior notes (B1/BB-/BB) and shifted proceeds to the shorter-maturity notes from the long-maturity paper, according to a syndicate source.

An upsized $1.75 billion amount of 5.5-year notes is talked to yield 5¼%. The tranche is upsized from $1.5 billion. Final talk comes tight to earlier yield talk in the 5 3/8% area.

A downsized $1.25 billion amount of seven-year notes is talked to yield 5½%. The long tranche is downsized from $1.5 billion. Final talk comes inside of earlier yield talk in the 5¾% area.

Early guidance had the 5.5-year notes coming at 5% to 5½% and the seven-year notes at 5½% to 6%, sources said.

Books were scheduled to close on Thursday.

UBS Investment Bank and Morgan Stanley & Co. are the joint physical bookrunners for the Rule 144A and Regulation S for life deal.

Barclays, J.P. Morgan Securities LLC, BNP Paribas, Credit Agricole CIB and SunTrust Robinson Humphrey are the joint bookrunners.

DVB Corporate, Fifth Third Bank, Goldman Sachs & Co., Loop Capital, MUFG, NAB and RBC Capital Markets LLC are the co-managers.

Proceeds will be used to fund the acquisition of C2 Aviation Capital LLC, the commercial aircraft leasing business of CIT Group, Inc.

The issuing entity will be Park Aerospace Holdings Ltd.

Avolon is a provider of aircraft leasing and lease management services, with headquarters in Dublin and Hong Kong.

© 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.