Avolon Establishes US$1.5 Billion Commercial Paper Programme
Avolon Holdings Limited (“Avolon”), a leading global aviation finance company, today announced that Avolon Aerospace Leasing Limited (“AALL”), its wholly-owned subsidiary, has established a US$1.5 billion commercial paper programme (the “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.
