Consortium Of Three Leading U.S. Banks Led By Wells Fargo Securities

Aircraft leasing group Avolon said Tuesday that it has raised an additional $465 million in capital, bringing the total value of funds raised since May 2010 to over $2.5 billion.

The capital raising is the third announced by Avolon in 8 months and consists of a fully underwritten long-term debt facility (including warehouse capacity) from a consortium of three leading US banks. The transaction was led and structured by Wells Fargo Securities and the consortium includes Citi and Morgan Stanley. It is intended that proceeds will be used to fund Avalon's growing aircraft fleet.

The $465 million additional capital raising brings the total capital raised by Avolon, since launch in May 2010, to over $2.5 billion. This comprises US$1 billion of equity and over $1.5 billion of debt. This recent capital raising is from a consortium of 3 leading US banks. The  transaction was led and structured by Wells Fargo Securities and the consortium includes Citi and Morgan Stanley. Avolon has already raised over $1 billion in debt financing from a range of leading European aviation finance banks including DVB, Nord LB, KfW IPEX Bank, UBS, Deutsche Bank, BNP Paribas and Credit Agricole CIB. This initial financing included a $400 million warehouse facility which was the first facility of this type to be successfully executed in three years.

"This debt raising is an important step in broadening our Lender base, introducing three new, US based, Lenders to Avolon," said Avolon Chief  financial Officer, Andy Cronin. "These significant commitments are an endorsement of the Avolon business model, the industry-leading team we have assembled and the strength of the portfolio we are building. International capital is accessible to prudent, well managed businesses, with credible long long term prospects."

FMI: www.avalon.aero