Avolon raises $650m to buy extra aircraft
Published 19/01/2011 | 05:00
Aircraft leasing firm Avolon, which was founded by Irish financier Domhnal Slattery, has raised an extra $650m (€485m) in financing, bringing to $2bn (€1.5bn) the amount the company has raised in equity and debt since it was launched last year.
The latest financing comprises $250m (€186m) in fresh equity, with the remainder being debt. The money is earmarked for acquiring extra aircraft.
The equity has been stumped up by existing investors in Avolon, including US-based Oak Hill Capital Partners, CVC Capital and Cinven. New investors in the equity funding included Oak Hill Capital Advisors.
The $400m in debt finance was secured from three institutions: DVB, Nord LB and KfW Ipex-Bank. Previous debt finance had been provided by Deutsche Bank, BNP Paribas and Credit Agricole.
The total raised by Avolon since last year is split equally between debt and equity.
Avolon also announced it had agreed to acquire 11 aircraft from four airlines in a sale-and-leaseback deal.
The aircraft include five Airbus A320s and six Boeing 737-800s. They have been acquired from and are being leased to Philippine Airlines, Indigo Airlines in India, Air Berlin and Virgin Blue in Australia.
Two of the aircraft were delivered to the customers last year and the remainder are due for delivery during the next 12 months.
The contract brings Avolon's committed fleet to more than 60 aircraft valued at close to $3bn (€2.2bn). It has inked sale-and-leaseback agreements on 40 aircraft since last year, while it also acquired aircraft from Airbus and Boeing.