International aircraft leasing company Avolon Holdings successfully re-priced $850 million of its senior secured $2.58 billion term loan B facility.

Avolon has repriced the $850 million tranche at LIBOR plus 1.50% and is subject to an original issue discount (OID) of 99.75. The maturity of this $850 million tranche has been extended to 2027.

In conjunction with this repricing, Avolon has also repaid $300 million of the original Facility, reducing the outstanding balance to $2.28 billion.

The outstanding balance of the facility has a maturity date of January 2025 and was repriced at LIBOR plus 1.75% with a LIBOR floor of 0.75% in Q2 2019.

Andy Cronin, Avolon chief financial officer, commented: “This successful repricing is another step in reducing Avolon’s cost of funds. The repricing at LIBOR plus 1.50% represents a new sector low for a term loan B facility. We have now reduced the overall size of the facility by over $3 billion, supporting our objective of increasing unencumbered assets within our capital structure and securing this interest margin on the loan – one of the lowest in the term loan B market – highlights the level of investor confidence in our business.”