International aircraft lessor Avolon released its fourth quarter results for 2018, as well as its full year report.
Q4 highlights included:
Delivered a total of 10 new aircraft to seven customers and sold 25 aircraft, including the sale of six aircraft to Jade Aviation, Avolon’s joint venture with China Cinda
Transitioned five aircraft to new lessees
Executed a total of 46 lease transactions, comprised of new aircraft leases, second leases and lease extensions
Delivered the world’s first Airbus A330neo to TAP Airlines.
Ordered 100 Airbus A320neo family aircraft valued at $11.5 billion at list prices, adding to Avolon’s exclusively new technology orderbook
ORIX, through its wholly owned subsidiary ORIX Aviation Systems, acquired a 30% stake in Avolon for $2.2 billion
Moody’s upgrade of Avolon’s corporate credit rating to Ba1;
Increased unsecured revolving credit facility by $400 million to $2.2 billion
Repaid $772 million of public secured debt, including $407 million of Asset Backed Notes associated with Emerald Aviation Finance and $365 million of Avolon’s secured TLB-3, in line with Avolon’s corporate objective to increase the level of unencumbered assets in its portfolio
Contracted the sale of a portfolio of 49 regional jet aircraft to Falko
2018 full year highlights included:
– Delivered a total of 61 aircraft including 28 transitions to 30 customers
Sold 87 aircraft
Executed a total of 153 lease transactions, comprising new aircraft leases, second leases and lease extensions and 130 sale agreements
Established two asset management platforms in partnership with third-party investors: Jade Aviation and Sapphire Aviation Finance, the latter of which acquired 41 aircraft from the Avolon fleet
Successfully raised a total of $4.2 billion of debt (excluding Sapphire) including $1.5 billion of senior unsecured notes and $1.3 billion of warehouse and other revolving credit capacity
Had total revolving debt facilities of $4.2 billion as of December 31, 2018
Dómhnal Slattery, Avolon CEO, commented, “Avolon enters 2019 following another strong quarter and full year. We now have a portfolio-offering that is focused exclusively on young, modern, new technology and fuel efficient single and twin aisle aircraft types. Our recordsetting full year was underpinned by our robust lease and trading activity, where we delivered and transitioned 61 aircraft and sold 87 aircraft. Additionally, our recently announced Airbus order provides us with locked-in growth for the medium-term, helping us support the fleet requirements of our airline customers around the world.
“Our business continues to deliver strong results and our financial strength, coupled with our increasingly unencumbered asset base and diversified shareholder base, positions us well to achieve an investment grade rating. We remain excited about the prospects for the business and have confidence that we will continue to deliver value for our shareholders into the future.”
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