€620m loan arrangement boost to Irish lessor Avolon

Dublin-headquartered aircraft leasing company Avolon has secured a long-term loan arrangement that will finance up to 21 aircraft in the coming years.

The international lessor yesterday announced the completion of a (€623.5m) $675m eight-year debt facility financed by six banks based in Europe and the Asia-Pacific region. Avolon chief financial officer, Andy Cronin said the deal is a good fit for the company and its existing strategy of using low-cost, long-term debt to finance its operations.

“The closing of our single largest debt transaction, at a margin of 1.65%, is a milestone for the business and reflects the strength of our credit profile and strong demand from the bank market.

“This facility is consistent with our stated strategy of funding the business with low cost, long-term debt.”

“With this transaction we strengthen our existing banking relationships and complete our first transaction with Bank of Ireland Corporate Banking as a lead arranger in one of our debt facilities. The strength and depth of our banking relationships have been instrumental in our growth as we continue to diversify our sources of funds and finance our growing fleet,” he said.

The facility has been increased from the previously-announced $500m loan arrangement. It offers the company significant flexibility including an availability period of up to 15 months. It was founded by Clare entrepreneur Dómhnal Slattery.

Headquartered in Ireland, with offices in the US, Dubai, Singapore and China, Avolon provides aircraft leasing and lease management services. Avolon has an owned, managed and committed fleet of 251 aircraft serving 51 customers in 29 countries.