US$1.2 Billion Fresh Equity Injection into Avolon
January 25, 2016 | By Business Wire News
DUBLIN
Avolon, the international aircraft leasing company, today issues an update for the 2015 fourth quarter (‘Q4’) and full year and announces that Bohai Leasing is investing an incremental US$1.2 billion of equity capital in the business bringing Avolon’s total available liquidity to US$2 billion to accelerate growth in 2016 and beyond.
Avolon begins 2016 as a wholly-owned, indirect subsidiary of Bohai Leasing, a global leader in transportation (container and aircraft) leasing and enters an exciting phase of growth. Following the completion of the merger on January 8, 2016, Avolon assumed management of Hong Kong Aviation Capital (HKAC) with a total fleet of over 400 aircraft.
Avolon is now the core aircraft leasing brand for Bohai Leasing and its parent, HNA Group. Together with HNA Group and Bohai’s other aircraft leasing interests, Avolon is the world’s fourth largest aircraft leasing business by asset value.
2015 Fourth Quarter Highlights
- Delivered 2 aircraft in Q4 to 2 airlines in 2 countries.
- 5 aircraft sold in Q4 with letters of intent in place for 16 aircraft disposals in 2016.
- Avolon Capital Partners (ACP) acquired one aircraft on lease during Q4 bringing the total aircraft under management by ACP to 9.
2015 Full Year Highlights
- Avolon delivered 32 new aircraft to 17 airlines in 14 countries in 2015.
- Signed new sale and leasebacks for 38 aircraft in 2015 of which 22 deliver in 2016 and 13 in 2017.
- Continued momentum in aircraft sales; 17 aircraft sold in 2015.
- Replaced three US$125 million unsecured debt facilities at a margin of 200bps with a single US$525 million unsecured debt facility at a margin of 175bps and an extended availability period until 2019.
Dómhnal Slattery, Avolon CEO, commented:“Following another active year in 2015, we enter 2016 as a substantially larger and stronger business with a fleet of over 400 aircraft. As the core leasing brand for Bohai Leasing and the HNA Group, we are excited about the prospects for the business. Bohai has now committed incremental equity of US$1.2 billion to the business which provides us with total available liquidity of US$2 billion to deliver on our ambitious growth objectives. Our target is to become a top 3 player in the global industry and we will achieve that through a combination of both organic and acquisition growth.”
Avolon in 2016
- Following completion of the merger with Bohai Leasing on January 8, 2016, Avolon assumed management of the HKAC business under the Avolon brand.
- Avolon is now part of the HNA Group’s extensive interests in the aviation sector globally including, Interests in 25 airlines: 20 in China along with airlines in Brazil, France, Portugal, South Africa and Turkey.
- Including HKAC’s fleet, Avolon’s pro-forma fleet at December 31, 2015, comprised 418 aircraft serving 67 customers in 37 countries.
- Avolon’s owned fleet has an average aircraft age of 3.2 years making it the youngest owned fleet of the top ten lessors globally.
- Avolon’s fleet includes direct orders from manufacturers for new technology aircraft, including 105 Airbus neo aircraft (A320 family and A330); 20 Boeing 737 MAX aircraft; and 6 Boeing 787-9 aircraft.
Pro-forma Aircraft Portfolio at December 31, 2015
| Aircraft
Type |
Avolon
Owned |
Avolon
Managed |
Avolon
Committed |
Avolon
Total |
HKAC
Owned |
HKAC
Managed |
HKAC
Committed |
Avolon
& HKAC |
||||||||
| A319ceo | 1 | – | – | 1 | 0 | 0 | 0 | 1 | ||||||||
| A320ceo | 49 | 4 | 11 | 64 | 39 | 4 | 5 | 112 | ||||||||
| A321ceo | 10 | 2 | 9 | 21 | 1 | 0 | 0 | 22 | ||||||||
| A320neo | – | – | 25 | 25 | 0 | 0 | 45 | 70 | ||||||||
| A321neo | 0 | 0 | 0 | 0 | 0 | 0 | 30 | 30 | ||||||||
| A330neo | – | – | 15 | 15 | 0 | 0 | 0 | 15 | ||||||||
| A330-200/300 | 10 | – | 2 | 12 | 12 | 6 | 0 | 30 | ||||||||
| B737-800 | 61 | 3 | 11 | 75 | 5 | 0 | 0 | 80 | ||||||||
| B737 MAX | – | – | 20 | 20 | 0 | 0 | 0 | 20 | ||||||||
| B787-8/9 | 3 | – | 13 | 16 | 0 | 0 | 0 | 16 | ||||||||
| B777-300ER | 3 | – | – | 3 | 0 | 0 | 0 | 3 | ||||||||
| B777-200LRF | – | 2 | – | 2 | 0 | 0 | 0 | 2 | ||||||||
| B747-400F | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 1 | ||||||||
| E190 | 4 | – | – | 4 | 9 | 3 | 0 | 16 | ||||||||
| TOTAL | 141 | 11 | 106 | 258 | 66 | 14 | 80 | 418 | ||||||||
About Avolon
Headquartered in Ireland, with offices in the United States, Dubai, Singapore, Hong Kong and Shanghai, Avolon provides aircraft leasing and lease management services. Avolon is a wholly-owned, indirect subsidiary of Bohai Leasing, a Chinese public company listed on the Shenzhen Stock Exchange. As of December 31, 2015, Avolon’s owned, managed and committed fleet, together with the Hong Kong Aviation Capital fleet, comprised 418 aircraft with an average owned aircraft age of 3.2 years. Together, Avolon, Bohai Leasing and HNA Group is the world’s fourth largest aircraft leasing business by asset value. See www.avolon.aero
View source version on businesswire.com: http://www.businesswire.com/news/home/20160125006559/en/
FTI Consulting for Avolon:
Jonathan Neilan, +353 1 663 3686
Mobile: +353 86 231 4135
avolon@fticonsulting.com
or
Jennifer Peters, +353 1 663 3684
Mobile: +353 87 178 7021
avolon@fticonsulting.com
