Avolon prices oversubscribed tender offer for three note 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 and pricing terms for their offers to purchase notes from three series for an aggregate cash purchase price of up to $750 million, according to news releases on 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As of the 5 p.m. ET Dec. 1 early tender deadline, $849,725,000 of the notes were validly tendered and not withdrawn, which is over the maximum tender cap. As a result, Avolon will accept for purchase the early tendered notes by acceptance priority level, subject to proration.

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

• $478,286,000 accepted of the $512,966,000 tendered of Park’s $1,775,854,000 outstanding 5.25% notes due 2022 (Cusip: 70014LAA8). The notes were accepted with a proration factor of 93% and will be purchased at $1,045.40 per $1,000 of notes, based on the 0.125% Treasury note due Oct. 31, 2022 plus 220 basis points. The series was subject to a purchase price cap of $500 million;

• $196.41 million accepted of the $224,021,000 tendered of Avolon’s $646,381,000 outstanding 3.625% senior notes due 2022 (Cusip: 05401AAE1). The notes were accepted with a proration factor of 88% and will be purchased at at a price of $1,018.28 per $1,000 of notes, based on the 0.125% Treasury note due Oct. 31, 2022 plus 205 bps. The series was subject to a purchase price cap of $200 million; and

• $48.01 million accepted of the $112,738,000 tendered of Avolon’s $462,590,000 outstanding 5.5% notes due 2023 (Cusip: 05401AA9). The notes were accepted with a proration factor of 43% and will be purchased at $1,041.45 per $1,000 of notes, based on the 0.25% Treasury note due Nov. 15, 2023 plus 315 bps. The series was subject to a purchase price cap of $50 million.

The total consideration includes with an early tender premium of $30 per $1,000 of notes accepted for purchase. Pricing was determined at 10 a.m. ET Dec. 2.

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

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

Following the cancellation of the accepted notes, $1,297,286,000 of the 5.25% notes will remain outstanding, $449,971,000 of the 3.625% notes will remain outstanding and $414.58 million of the 5.5% notes will remain outstanding.

The offers will expire at 11:59 p.m. ET Dec. 15. However, no notes tendered after the early tender deadline will be accepted as the tender cap has been reached.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.