Avolon has disclosed the pricing of a $3 billion private placement today.
The lessor priced $1.75 billion-worth of five-year senior notes at 5.25%, while the $1.25 billion seven-year notes priced at 5.50%. The deal is to close around 3 February.
FlightGlobal understands that Morgan Stanley and UBS are lead bookrunners on the deal, while Barclays, JP Morgan, BNP Paribas, Credit Agricole CIB and SunTrust Robinson Humphrey are acting as joint bookrunners.
Avolon will use the capital – together with cash, new equity contributed by Avolon's indirect parent company Bohai Capital, and a $5.5 billion senior secured term loan facility being arranged by the same banks listed above – to finance the purchase of CIT's aircraft leasing business.
The proceeds will initially be held in escrow for the benefit of noteholders. If the acquisition does not close by 6 October, the notes will be subject to special mandatory redemption.
Avolon's CIT transaction has yet to close and is still subject to regulatory approvals as well as Bohai shareholder approval.
This story has been updated to include the banks that worked on the deal