Generated $423 million of net cash from operating activities in the quarter
Delivered $185 million in profit for the quarter
Finance expense impacted by $83 million movement in non-cash gains and charges related to debt facility amendment and refinancing activity
At 30 June 2019, Avolon had $16.6 billion future contracted rental cashflows
At quarter end, Avolon had US$6.4 billion of available liquidity in unrestricted cash, undrawn revolving credit facilities and undrawn secured and unsecured debt.
Operating highlights from the second quarter of 2019 included:
Owned and managed fleet of 530 aircraft, with total orders and commitments for 393 new technology aircraft
Executed a total of 24 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions
Delivered a total of 15 new aircraft to 10 customers and transitioned 11 aircraft to follow-on lessees
Sold 38 aircraft during the quarter including the sale of 34 regional aircraft
Total of 149 airline customers operating in 60 countries.
Strategic highlights from the second quarter of 2019 included:
Closing of a private offering by Avolon of $2.5 billion, aggregate principal amount, of senior unsecured notes, upsized from an initial target size of US$1.8 billion due to significant investor demand
Corporate credit rating upgraded to investment grade by Fitch, Moody’s and S&P. Credit ratings at quarter end were:
Fitch BBB- (Stable Outlook)
Moody’s Baa3 (Stable Outlook)
S&P BBB- (Stable Outlook)
Upsized unsecured revolving credit facility by $488 million bringing the total facility size to over $2.8 billion
Repriced senior secured term loan B facility to LIBOR plus 1.75% in conjunction with the repayment of $800 million of the facility
Ordered 140 CFM LEAP-1A Engines, to power 70 A320neo family aircraft, valued at $2 billion at list prices announced at 2019 Paris Air Show
Dómhnal Slattery, Avolon CEO, commented, “The second quarter was headlined by our successful achievement of an Investment Grade rating profile – which was delivered well ahead of the expected time frame and affirms our long-held view that we have an Investment Grade quality business.
“We continued our strong financial and trading performance from the previous quarter, delivering total revenues of $682 million, a profit of $185 million and selling 38 aircraft. Our strong cash flow generating capabilities and consistent aircraft trading performance, coupled with our capital raising activities, resulted in Avolon ending the quarter with $6.4 billion of total available liquidity.”
2019 marks the tenth year I have contributed to the Monitor 100 publication. Over the course of the past ten years, I have written for the Monitor under the pen-name Dexter Van Dango more than 40 times, addressing issues that... read more
The 28th annual list of Monitor 100 companies reported $514.1 billion in net assets, $201.1 billion in originations and 28,666 employees. The group maintained steady momentum in portfolio growth, posting a 5.8% year-over-year increase, with 82 companies recording net gains... read more