By Paul A. Harris
Portland, Ore., Jan. 20 – Avolon Holdings Ltd. priced $3 billion of non-callable senior notes (B1/BB-/BB) in two tranches, both of which came on top of downwardly revised talk on Friday, according to a syndicate source.
A tranching revision saw $250 million of proceeds shifted to the shorter-maturity tranche from the long tranche.
An upsized $1.75 billion amount of 5.5-year notes priced at par to yield 5¼%. The tranche size was increased from $1.5 billion.
The yield printed on top of yield talk that had been revised from earlier talk in the 5 3/8% area. Initial guidance on the 5.5-year notes was 5% to 5½%.
A downsized $1.25 billion amount of seven-year notes priced at par to yield 5½%. The long tranche was downsized from $1.5 billion. The yield printed on top of yield talk that had been revised from earlier talk in the 5¾% area. Initial guidance on the seven-year notes was 5½% to 6%.
UBS Investment Bank and Morgan Stanley & Co. were the joint physical bookrunners.
Barclays, J.P. Morgan Securities LLC, BNP Paribas, Credit Agricole CIB and SunTrust Robinson Humphrey were the joint bookrunners.
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 is Park Aerospace Holdings Ltd.
Avolon is a provider of aircraft leasing and lease management services, with headquarters in Dublin and Hong Kong.
| Issuer: | Park Aerospace Holdings Ltd.
|
| Amount: | $3 billion
|
| Securities: | Senior notes
|
| Joint physical bookrunners: | UBS, Morgan Stanley
|
| Joint bookrunners: | Barclays, JPMorgan, BNP Paribas, Credit Agricole CIB, SunTrust Robinson Humphrey
|
| Co-managers: | DVB Corporate, Fifth Third, Goldman Sachs, Loop Capital, MUFG, NAB, RBC
|
| Trade date: | Jan. 20
|
| Settlement date: | Feb. 3
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| 5.5-year notes
|
| Amount: | $1.75 billion, increased from $1.5 billion
|
| Maturity: | Aug. 15, 2022
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Spread: | 314 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Price talk: | 5¼%, revised from 5 3/8% area
|
|
|
| Seven-year notes
|
| Amount: | $1.25 billion, decreased from $1.5 billion
|
| Maturity: | Feb. 15, 2024
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 321 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Price talk: | 5½%, revised from 5¾% area
|
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