Street Calls of the Week
LONDON - Aircraft leasing company Avation PLC (LSE:AVAP) announced Tuesday it plans to issue $300 million in senior notes due 2031 under its newly established $1 billion Global Medium Term Note Programme.
The notes will be issued by Avation Group (S) Pte. Ltd. and guaranteed by Avation PLC. According to the company’s statement, the 5.5-year notes will have their first call option at par plus 50% of the coupon, with initial price talk in the low to mid-8% range.
Joint lead managers for the offering include WFS and HSBC, with Deutsche Bank, MUFG, Crédit Agricole CIB, Zeus Capital, Imperial Capital, and Pareto Securities serving as managers.
Avation said proceeds from the notes will be used to refinance its existing Senior Notes due 2026 and cover transaction-related fees and expenses. The company expects to price the offering on Thursday, October 23, with settlement to follow ten business days later.
The commercial passenger aircraft leasing company currently manages a fleet of 33 aircraft, including turboprop, widebody, and narrowbody styles, which it leases to 16 airline customers across 14 countries in Europe and Asia.
The notes will be offered through a 144A/Regulation S distribution with minimum denominations of $200,000 and increments of $1,000 thereafter.
The company is hosting an investor call today at 11:00 AM ET to discuss the offering, based on information provided in the press release statement.
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