8-Oct-2013 7:42 AM

Avolon fleet reaches 179 aircraft

Avolon issued (07-Oct-2013) a trading update for 3Q2013. At the end of the period, Avolon’s committed fleet reached 179 aircraft serving 37 customers in 24 countries. Avolon also recently announced the pricing of USD636 million of Fixed Rate Asset Backed Notes by Emerald Aviation Finance Limited which will use the proceeds to acquire 20 aircraft from Avolon. The carrier provided the following highlights for the Jul-2013 to Sep-2013 quarter:

  • 3Q2013 was Avolon’s most active period since the formation of the business;
  • Total committed fleet increased from 171 to 179 aircraft;
  • Total aircraft delivered and under management now exceed USD6 billion;
  • Secured commitments for an incremental USD1.1 billion of debt capital;
  • Continued strong trading performance with the sale of 4 aircraft in the period, bringing total aircraft traded year-to-date to 10;
  • Avolon Capital Partners, the USD500 million JV with Wells Fargo, is now active in the market and has taken delivery of two aircraft;
  • Emerald Aviation Finance Limited priced USD636 million of Fixed Rate Asset Backed Note to acquire 20 aircraft from Avolon;
  • Avolon delivered its first Boeing 787 aircraft to LATAM Airlines and the first A319 aircraft to American Airlines;
  • igned new lease agreements with two new customers and extended the lease term on 10 aircraft with three current customers - now serving 37 customers in 24 countries.

The company also provided the following details on its financial strength and asset backed securitisation: 

  • Avolon retains a strong balance sheet with total committed capital now in excess of USD6 billion;
  • Secured commitments for USD1.1 billion of incremental debt capital in the third quarter including:
    • USD636 million Asset Backed Securitisation;
    • USD180 million of export cedit facilities from US ExIm Bank and Export Credit Guarantee Department of the United Kingdom;
    • USD150 million comprising two unsecured revolving facilities;
    • USD50 million upsize of warehouse facility;
    • USD85 million of commercial term debt facilities;
  • Avolon extended its lending group which now comprises 29 financial institutions adding two new lenders in the quarter

The company also provided the following fleet growth summary: 

  • Total committed fleet of 179 aircraft at the end of Sep-2013;
  • Current delivered fleet, net of trading, reached 105 aircraft (97 owned, 8 managed);
  • Delivered 10 new aircraft to five clients during the period;
  • Deliveries included Avolon’s first 787-8;
  • Avolon sold four aircraft in the third quarter and remains one of the most active traders in the market;
  • Extended the term on 10 aircraft leases with 3 airline customers;
  • Completed placement of aircraft forward orderbook out to mid 2015;
  • Avolon Capital Partners is now active and took delivery of its first two aircraft in the period - an A320-200 and 737-800NG on lease to AviancaTaca and Ryanair respectively;
  • Avolon’s fleet is comprised of the most liquid aircraft in the world with an average age of 2.1 years and an average remaining lease term of 6.9 years. [more - original PR]

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