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Avolon Raises US$465m of Additional Debt Finance

Dépèche transmise le 25 janvier 2011 par Business Wire

Avolon Raises US$465m of Additional Debt Finance

DUBLIN & NEW YORK & HONG KONG & SHANGHAI--(BUSINESS WIRE)--Avolon, the aircraft leasing group, today announces an additional capital raising of US$465m, bringing the total value of funds raised since May 2010 to in excess of US$2.5 billion.

The capital raising is the third announced by Avolon in 8 months and consists of a fully underwritten long-term debt facility (including warehouse capacity) from a consortium of three leading US banks. The transaction was led and structured by Wells Fargo Securities and the consortium includes Citi and Morgan Stanley. It is intended that proceeds will be used to fund Avolon’s growing aircraft fleet.

Highlights

• US$465 million debt financing provided by three leading US banks: Wells Fargo Securities, Citi and Morgan Stanley
• Facility provides term financing for a number of aircraft, as well as additional warehouse capacity, increasing Avolon’s underwriting capacity
• US$2.5 billion of capital raised in under a year in three separate capital raisings, including US$1 billion of equity
• Additional financing will support the continued growth of the Avolon fleet which currently stands at over 60 committed aircraft, valued at over US$2.8billion

Capital Raising

The US$465 million additional capital raising brings the total capital raised by Avolon, since launch in May 2010, to over US$2.5 billion. This comprises US$1 billion of equity and over US$1.5 billion of debt. This recent capital raising is from a consortium of 3 leading US banks. The transaction was led and structured by Wells Fargo Securities and the consortium includes Citi and Morgan Stanley.

Avolon has already raised over US$1 billion in debt financing from a range of leading European aviation finance banks including DVB, Nord LB, KfW IPEX-Bank, UBS, Deutsche Bank, BNP Paribas and Credit Agricole CIB. This initial financing included a US$400 million warehouse facility which was the first facility of this type to be successfully executed in three years.

Avolon Chief Financial Officer, Andy Cronin, commented:

“We are pleased to announce a further capital raising which brings our total capital raised to over US$2.5 billion. This debt raising is an important step in broadening our Lender base, introducing three new, US based, Lenders to Avolon. These significant commitments are an endorsement of the Avolon business model, the industry-leading team we have assembled and the strength of the portfolio we are building. International capital is accessible to prudent, well-managed businesses, with credible long-term growth prospects.”

Head of Commercial Operating Asset Finance, Jessica Gray, Wells Fargo Securities, added:

“We are delighted to announce our partnership with Avolon and to provide capital to a business that has compelling growth prospects. This commitment reflects our confidence in the Avolon team, the strength and reputation of their investor group and the quality of Avolon’s growing aircraft portfolio. We look forward to continuing to work with the Avolon team as the business grows.”

Avolon Factsheet

• Total capital in excess of US$2.5 billion raised since May 2010 comprising US$1 billion of equity and over US$1.5 billion of debt
• Equity raising of US$1 billion - investors include three of the world’s leading private equity firms: Cinven, CVC Capital Partners and Oak Hill Capital Partners
• Debt finance of over US$1.5 billion from a range of ten US and European based banks, including:
  • US$400 million warehouse facility closed in May 2010 which was the first facility of this type to be successfully executed in three years
  • Term / Warehouse finance of US$465m from a consortium of leading US banks led by Wells Fargo Securities and including Citi and Morgan Stanley
• Appointment of over 20 professionals in offices in Dublin New York, Hong Kong & Shanghai
• Completion of an initial order for 12 737-800 NG aircraft from Boeing
• Completion of an initial order for 8 A320 aircraft from Airbus
• Completion of sale and leaseback and portfolio transactions on over 40 aircraft
• Avolon’s existing customers include 18 airlines across five continents

ENDS

About Avolon

Headquartered in Ireland, Avolon provides aircraft leasing and lease management services. Avolon’s investors include three of the world’s leading private equity firms Cinven, CVC Capital Partners and Oak Hill Capital Partners.

Avolon is rapidly establishing itself as one of the leading global players in the aircraft leasing sector, leveraging off the strong financial backing of its owners and the extensive trading history and senior industry relationships of its management team.

Avolon has a team of over 20 experienced professionals across its offices in Dublin, New York, Hong Kong and Shanghai. Since launch Avolon has executed contracts and letters of intent for the purchase of over 60 aircraft comprising Airbus A320s, Boeing 737NGs and Airbus A330s. See www.avolon.aero

About Wells Fargo Securities

Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.2 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com and wachovia.com), and other distribution channels across North America and internationally. With more than 278,000 team members, Wells Fargo serves one in three households in America. Wells Fargo & Company was ranked #19 on Fortune’s 2009 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.

Wells Fargo Securities is the trade name for certain capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Securities, LLC, member FINRA and SIPC, and Wells Fargo Bank, National Association.

Commercial Operating Asset Finance has a 20-year history as an arranger, lender and principal investor in structured finance transactions across a variety of asset classes with a primary focus on transportation and other operating assets.