Avolon , the international aircraft leasing company, today issues an update for the third quarter of 2015 (‘Q3’). Avolon delivered eight aircraft in Q3 valued at $346 million and sold seven aircraft during Q3. Avolon’s total owned, managed and committed fleet at September 30, 2015 was 258 aircraft, an increase of 14% year-on-year.
2015 Q3 Highlights
Business Activity
Ø Avolon committed to lease five Boeing 787-9 aircraft to Hainan Airlines in a transaction valued at $1.3 billion at current list prices delivering in 2016 and 2017, subject to completion of the merger agreement with Bohai Leasing Co., Ltd. (‘Bohai’).
Ø Replaced three existing $125 million unsecured debt facilities at a margin of 200bps with an availability period until 2017 with a single $525 million unsecured debt facility at a margin of 175bps with an availability period until 2019.
Ø Avolon’s total fleet commitments for delivery in 2016 now stand at 29 aircraft.
Ø Avolon Capital Partners acquired one aircraft on lease to Vueling Airlines during Q3.
Ø Continued momentum in aircraft sales; seven aircraft sold in Q3, with close to $180 million of aircraft under letters of intent (‘LOI’) for disposal in Q4 2015. In addition, Avolon has already signed LOIs to sell approximately $800 million of aircraft in 2016.
Bohai Transaction
Ø Avolon entered into a definitive merger agreement to be acquired by Bohai at a price of US$31 cash per common share giving Avolon a total enterprise value of approximately US$7.6 billion.
Ø US$31 per share represents a 55% premium to Avolon’s initial public offering at US$20 per share in December 2014.
Fleet Metrics
Ø Delivered (owned and managed) fleet of 154 aircraft at the end of Q3 increased by 20 aircraft or 15% on Q3 2014.
Ø Owned, managed and committed fleet increased by 31 aircraft to 258 aircraft at the end of Q3, up 14% year-on-year.
Ø Owned fleet average age of 2.7 years and an average lease term remaining of 7 years at the end of Q3.
Investor Relations
Ø Q3 results will be announced at 6.00am ET (11.00am GMT) on November 11, 2015 with a conference call at 8.30am ET (1.30pm GMT) on that date.
Ø Avolon will participate in the Goldman Sachs Aircraft Leasing Conference on December 3, 2015.
Boeing, TAROM and CDB Aviation have celebrated the delivery of the airline’s first 737‑8, marking the arrival of Romania’s first Boeing 737 MAX and a key milestone in the national carrier&...
As the 10th edition of the Riga Aviation Forum was getting ready to open, 50SkyShades — a long‑standing Media Partner of the event — took the opportunity to sit down with Zigmars Vestfals,...
TARMAC Aerosave, Europe’s leading specialist in aircraft storage, maintenance, dismantling and recycling, has announced an expanded collaboration with AerFin, the global aviation asset‑managemen...
Electra and The Atlas Group today announced a landmark airframe agreement for the EL9 Ultra‑Short aircraft, uniting Electra’s next‑generation design with Atlas’s established aerospace manu...
