Avolon Aerospace Leasing announced that Emerald Aviation Finance, a newly established special purpose company, priced a total of $636.2 million of fixed rate asset backed notes, the proceeds of which will be used by Emerald to acquire a fleet of 20 aircraft from Avolon or certain of its affiliates. Avolon expects to use the net proceeds of the sale of the initial aircraft to refinance existing debt.

The issue will comprise $546.0 million of 4.65% class A-1 fixed rate asset backed notes and $90.2 million of 6.35% class B-1 fixed rate asset backed notes. Avolon will acquire the junior class E note issued by the Emerald Aviation Finance. The transaction is expected to close on or about 16 October 2013.

As of September 15, 2013, the initial aircraft were leased to 15 lessees based in 14 countries. The initial aircraft will comprise a mix of narrowbody, widebody and regional jets with an average age of 3.07 years.

Avolon will act as servicer with respect to the initial aircraft and any additional aircraft acquired by Emerald Aviation Finance.