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25-Jan-2017 8:54 AM

2016: A Transformational Year for Avolon

Direct News Source

24-Jan-2017 Avolon, the international aircraft leasing company, issues an update for the 2016 fourth quarter ('Q4') and full year. 2016 was a transformational year for Avolon which included the completion of its acquisition by Bohai Capital, its agreement to acquire the aircraft leasing business of CIT Group and the delivery of 74 aircraft. Avolon's owned, managed and committed fleet grew 69% in 2016 to 435 aircraft by year-end. This fleet will effectively double again in 2017 on completion of the acquisition of the aircraft leasing business of CIT Group.

2016 Strategic Highlights

Announced a series of corporate transactions including:

  • Completion of US$7.6 billion acquisition by Bohai Capital and delisting from NYSE;
  • Integration of Hong Kong Aviation Capital (HKAC) into Avolon;
  • Acquisition of US$2 billion portfolio of 45 aircraft from GECAS;
  • Increased secured and unsecured committed debt facilities by a total of over US$2.4 billion; and
  • Agreement to acquire the CIT Group aircraft leasing business for US$10 billion.

Ø Since the 2016 year-end, Avolon has made further progress towards the completion of the acquisition of the CIT Group aircraft leasing business including:

  • US$8.5 billion raised in capital markets to finance the acquisition of the CIT Group aircraft leasing business;
  • Receipt of corporate/issuer credit ratings from Fitch (BB), Moody's (Ba3) and S&P Global (BB+); and
  • Appointment of three additional independent Directors to the Avolon Board.

2016 Full Year Highlights

  • 74 aircraft delivered and 35 aircraft sold in 2016.
  • Owned, managed and committed fleet increased by 69% year-on-year to 435 aircraft at the end of 2016.
  • Average age of owned fleet of 3.5 years and average remaining lease term of 7.3 years at the end of 2016.
  • Total customer base increased to 85 airlines in 40 countries by year-end.

2016 Fourth Quarter Highlights

  • 25 aircraft delivered and seven aircraft sold during the fourth quarter.
  • Letters of intent signed in Q4 for sale & lease back of further 13 aircraft including seven A320neo, two 737MAX and two A350 aircraft.