IRISH AIRCRAFT leasing group Avolon has raised $650 million (€486 million) in debt and equity to fund its expansion.
This involves $250 million in equity from new and existing investors and the balance in debt raised from three specialist aviation banks: DVB, Nord LB and KfW IPEX-Bank.
This is Avolon’s second funding round since it was formed in May 2010, bringing to $2.05 billion the total it has raised to date.
The new equity has come primarily from Avolon’s existing investors: Cinven, CVC Capital Partners and Oak Hill Capital Partners.
Other investors who participated in this funding include Oak Hill Advisors.
Avolon also announced yesterday that it has agreed terms to acquire 11 new aircraft, under sale and leaseback structures, from four airlines. This involves five Airbus A320s. Two are being leased to Philippine Airlines and three to Indigo Airlines in India.
Six Boeing 737-800s are being leased to Air Berlin in Germany and Virgin Blue in Australia.
Avolon has a fleet of 60 aircraft valued at in excess of $2.8 billion.
Its sale and leaseback book comprises of more than 40 units, dominated by short-haul Airbus and Boeing planes.
The company has 18 airline customers across five continents.
Avolon was founded by Clare businessman Dómhnal Slattery, who previously worked for Tony Ryan’s GPA and for RBS Aviation Capital. He also ran Claret Capital, a Dublin-based private equity group.
Its investments included US private hospital group HCA; the five-star St Regis hotel in Washington; Barry O’Callaghan’s Education Media and Publishing Group; and JetBird, an executive jet airline that has missed several launch dates.
Seven executives from RBS joined Avolon last year. The company has more than 20 staff in its offices in Dublin, New York, Hong Kong and Shanghai.
To date, it has secured $1.05 billion in debt finance. Other institutions who have provided funds include UBS, Deutsche Bank, BNP Paribas and Crédit Agricole CIB.
