By Paul A. Harris
Portland, Ore., Sept. 14 – Avolon Holdings Ltd. priced an upsized $1.25 billion amount of senior bullet notes (Ba3/BB/BB) on Thursday, according to a syndicate source.
The notes were issued via Avolon’s subsidiary, Park Aerospace Holdings Ltd.
The deal included $300 million of 3.5-year notes, which priced at par to yield 3 5/8%. The tranche, which was added subsequent to the deal being announced, was upsized from $250 million. The yield printed on top of yield talk.
In addition Avolon priced a downsized $950 million amount of 5.5-year notes at par to yield 4˝%. The tranche was downsized from $1 billion, with proceeds shifted to the 3.5-year notes. The yield printed at the tight end of the 4˝% to 4 5/8% yield talk.
Morgan Stanley & Co. was the lead bookrunner. Barclays, Credit Agricole CIB and UBS Investment Bank were the joint bookrunners.
The aircraft leasing and lease management services provider plans to use proceeds for general corporate purposes and to repay certain secured debt.
The company maintains headquarters in Dublin and Hong Kong.
| Issuer: | Park Aerospace Holdings Ltd.
|
| Amount: | $1.25 billion, increased from $1 billion
|
| Securities: | Senior notes
|
| Lead bookrunner: | Morgan Stanley & Co.
|
| Joint bookrunners: | Barclays, Credit Agricole CIB, UBS Investment Bank
|
| Co-managers: | BNP Paribas, Fifth Third, SunTrust
|
| Trade date: | Sept. 14
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| 3.5-year notes (added tranche)
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | March 15, 2021
|
| Coupon: | 3 5/8%
|
| Price: | Par
|
| Yield: | 3 5/8%
|
| Spread: | 203 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Price talk: | 3 5/8%
|
|
|
| 5.5-year notes
|
| Amount: | $950 million, decreased from $1 billion
|
| Maturity: | March 15, 2023
|
| Coupon: | 4˝%
|
| Price: | Par
|
| Yield: | 4˝%
|
| Spread: | 263 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Price talk: | 4˝% to 4 5/8%
|
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