Avolon gets early tenders for $849.73 million notes from three series

By Taylor Fox

New York, Dec. 2 – Avolon Holdings Ltd. wholly owned subsidiaries Avolon Holdings Funding Ltd. and Park Aerospace Holdings Ltd. announced the early tender results on their offers to purchase notes from three series for an aggregate cash purchase price of up to $750 million, according to a news release Tuesday.

As of the 5 p.m. ET Dec. 1 early tender deadline, $849,725,000 of the notes were validly tendered and not withdrawn.

The amounts of notes tendered from each series, listed by acceptance priority level, are as follows:

• $512,966,000 of Park’s $1,775,854,000 outstanding 5.25% notes due 2022 (Cusip: 70014LAA8) at a price based on the 0.125% Treasury note due Oct. 31, 2022 plus 220 basis points, subject to a series tender cap of $500 million;

• $224,021,000 of Avolon’s $646,381,000 outstanding 3.62% senior notes due 2022 (Cusip: 05401AAE1) at a price based on the 0.125% Treasury note due Oct. 31, 2022 plus 205 bps, subject to a series tender cap of $200 million; and

• $112,738,000 of Avolon’s $462,590,000 outstanding 5.5% notes due 2023 (Cusip: 05401AA9) at a price based on the 0.25% Treasury note due Nov. 15, 2023 plus 315 bps, subject to a series tender cap of $50 million.

As previously reported, holders who tender their notes by the early tender deadline are eligible to receive the total consideration, including an early tender premium of $30 per $1,000 of notes tendered.

The total consideration will be calculated at 10 a.m. ET Dec. 2.

Holders will also receive interest, which is not included in the $750 million maximum tender cap.

The offers will expire at 11:59 p.m. ET Dec. 15.

The amounts of each series of notes that are accepted for purchase in the offer will be determined in accordance with their acceptance priority levels, subject to the maximum tender cap and any applicable series cap.

Notes tendered by the early tender deadline will have priority in acceptance over notes tendered after the early deadline, even if the notes tendered after the early deadline have a higher acceptance priority level than those tendered before the deadline.

Notes may be subject to proration if the overall tender cap or any series cap is exceeded.

The early settlement date is expected to be Dec. 3.

The final settlement date is expected to be Dec. 17.

The offers are subject to a financing condition.

Deutsche Bank Securities Inc. (866 627-0391), Mizuho Securities USA LLC (866 271-7403) and Wells Fargo Securities, LLC (800 645-3751) are the lead dealer managers.

Barclays, BNP Paribas Securities Corp. and MUFG Securities Americas Inc. are co-dealer managers.

Global Bondholder Services Corp. (212 430-3774, 866 924-2200; contact@gbsc-usa.com) is the information agent and the tender agent.

Avolon is a Dublin-based provider of aircraft leasing and lease management services.

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