By Paul A. Harris
Portland, Ore., Feb. 14 – Avolon Holdings Ltd. priced an upsized $1.1 billion of senior notes (Ba2/BB+/BB+) in two bullet tranches on Thursday, according to a market source.
The deal featured an upsized $300 million add-on to the Park Aerospace Holdings Ltd. 5¼% senior notes due Aug. 15, 2022, which priced a 101.375 to yield 4.814%. The add-on size was increased from $250 million. The issue price came in the middle of the 101.25 to 101.5 price talk.
In addition, Avolon Holdings Funding Ltd. priced an upsized $800 million of new 5¼% senior bullet notes due May 15, 2024 at par to yield 5.246%. The issue size was increased from $500 million. The yield printed near the middle of yield talk in the 5¼% area.
The overall size of the two-part transaction increased from $750 million.
Barclays and Credit Agricole CIB were the lead bookrunners. Barclays will bill and deliver.
BNP Paribas, Deutsche Bank Securities Inc., Fifth Third Bank, J.P. Morgan Securities LLC, Mizuho Securities, Morgan Stanley & Co., Natixis, SG CIB, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds, including the proceeds resulting from the $350 million upsize, will be used for general corporate purposes, including debt repayment.
Avolon is a provider of aircraft leasing and lease management services, headquartered in Dublin with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai.
| Company: | Avolon
|
| Amount: | $1.1 billion, increased from $750 million
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Barclays (bill and deliver), Credit Agricole CIB
|
| Joint bookrunners: | BNP Paribas, Deutsche Bank, Fifth Third Bank, J.P. Morgan Securities LLC, Mizuho Securities, Morgan Stanley & Co., Natixis, SG CIB, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
|
| Trade date: | Feb. 14
|
| Settlement date: | March 1
|
| Ratings: | Moody's: Ba2
|
| S&P: BB+
|
| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Add-on
|
| Issuer: | Park Aerospace Holdings Ltd.
|
| Amount: | $300 million, increased from $250 million
|
| Maturity: | Aug. 15, 2022
|
| Security description: | Add-on to 5¼% senior notes due Aug. 15, 2022
|
| Coupon: | 5¼%
|
| Price: | 101.375
|
| Yield: | 4.814%
|
| Spread: | 233 bps
|
| Call protection: | Non-callable
|
| Price talk: | 101.25 to 101.5
|
| Original issue: | The original $1.75 billion issue at par in January 2017
|
| Total issue size: | $2.05 billion
|
|
|
| New notes
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| Issuer: | Avolon Holdings Funding Ltd.
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| Amount: | $800 million, increased from $500 million
|
| Maturity: | May 15, 2024
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| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5.246%
|
| Call protection: | Non-callable
|
| Price talk: | 5¼% area
|
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