Avolon unit creates US$1.5 billion commercial paper programme

Avolon announced that Avolon Aerospace Leasing Limited (“AALL”), its wholly-owned subsidiary, has established a US$1.5 billion commercial paper programme. Under the Programme, AALL may issue from time to time short-term, unsecured commercial paper notes (the “Notes”) under the exemption from registration contained in Section 4(a)(2) of the U.S. Securities Act of 1933, as amended (the “Securities Act”), with the aggregate principal amount of Notes outstanding at any time not to exceed US$1.5 billion. The Notes will be fully and unconditionally guaranteed by Avolon and certain of its subsidiaries. The Notes and the guarantees will rank at least pari passu with all other unsecured and unsubordinated indebtedness of AALL and the guarantors, respectively. The programme further diversifies Avolon’s funding sources and provides an additional flexible and cost-effective source of short-term capital to complement the company’s existing revolving credit facilities. Net proceeds from any issuance under the Programme are expected to be used for general corporate purposes, which may include funding aircraft acquisitions and the repayment of existing indebtedness. The Notes and the related guarantees have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any Notes under the Programme.  Ross O’Connor, Avolon CFO, commented: “The establishment of this commercial paper programme marks another important milestone in the continued evolution of Avolon’s funding and liquidity strategy. It provides additional flexibility to optimise our funding mix, supported by our investment-grade credit ratings, strong liquidity position and robust balance sheet, whilst broadening our investor base and diversification.” For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]