Avolon link-up with Wells Fargo takes flight
Avolon, the aircraft leasing business established by Domhnal Slattery, is teaming up with US financial services firm Wells Fargo to create a new and separate joint-venture leasing business called Avolon Capital Partners (ACP).
The deal will see ACP use Dublin as its headquarters. Avolon also has its HQ in the capital. Wells Fargo is one of a number of institutions that has supplied $3.7bn (€4.4bn) in debt capital to Avolon since its formation in 2010.
Wells Fargo will be the majority shareholder in the new joint venture, which aims to build an initial aircraft portfolio worth about $500m.
Specific terms of the deal weren't disclosed by the companies.
Andy Cronin, who is Avolon's chief financial officer, will also now take up a role as director of ACP. Avolon executive Daire O'Criodain will be ACP's managing director.
ACP will build its fleet primarily through sale and leaseback transactions with airlines on new aircraft. It will focus on young, fuel-efficient single and twin-aisle aircraft. Wells Fargo will also provide the banking and debt financing facilities for the venture.
Avolon is controlled by private equity groups including Cinven, CVC and Oak Hill Capital Partners and the Government of Singapore Investment Corporation.
The company currently has close to 100 aircraft in its fleet. It recently increased an existing order for 15 Airbus A320neo aircraft to 20. They have a list price of about $1.9bn.
In September it placed an order for 25 Boeing aircraft with a total list price of $2.4bn.