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  • Avation shelves planned bond issue

Avation shelves planned bond issue

Singapore-based lessor Avation has postponed a planned bond issuance after pricing of the notes fell short of its expectations.

The lessor had announced on 7 November that it was launching a US dollar fixed-rate unsecured bond offering for notes due 2022.

Details of the size of the offering were not disclosed, nor the indicative pricing. JP Morgan and RQW Pressprich & Co had been mandated as joint lead managers, with JP Morgan also the sole bookrunner.

However one day later, the company announced to the market that it has decided to postpone the issue following consultations with the bookrunner.

“Notwithstanding significant overall potential demand, it was found that the proposed pricing did not match the company’s investment criteria,”Avation says.

A research note from Fitch Ratings indicates that the lessor may have been seeking to raise around $200 million to finance its recently announced acquisitions of an Airbus A330-300 and a Boeing 777-300ER.

Fitch rated the proposed issue at B+, while Standard & Poor’s pegged it at B.

It is not yet clear if the company will be looking to other sources of finance to complete the deals.

The planned bond issuance comes only weeks after the London-listed lessor doubled the size of its global medium-term note programme to $1 billion. To date, it has tapped only $120 million from the facility.

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