Aviation Finance

Developments

Avolon announces pricing Of US$1.75 billion Senior Unsecured Notes Offering
9th January 2020: As anticipated in Aviation Finance on January 9th, Avolon has provided pricing details of its US$1.1 billion Senior Unsecured Notes due 2025 and US$650 million Senior Unsecured Notes due 2027. It is a private offering by its wholly owned subsidiary, Avolon Holdings Funding Limited, for a principal aggregate amount of US$1.75 billion. "The Offering comprises US$1.1 billion of 2.875% senior unsecured notes due 2025 (the “2025 Notes”) and US$650 million of 3.25% senior unsecured notes due 2027 (the “2027 Notes” and, together with the 2025 Notes, the “Notes”). The Notes will be fully and unconditionally guaranteed by Avolon, and by certain of its subsidiaries", it said. "The Offerings are expected to close on or about 14 January, 2020, subject to customary closing conditions. Net proceeds from the Offering will be used for general corporate purposes, which may include the future repayment of outstanding secured indebtedness".


In the latest edition of Aviation Finance (January 9th 2020)
In the latest issue: Boeing's important step to recommend flight simulator training for all MAX pilots; Boeing's difficulty - Airbus' opportunity as year-end push helps it hit revised delivery target for 2019; CDB Aviation appoints Pat Hannigan as CEO in succession to Peter Chang; Airlines create equity value, but with significant regional variations; BOC Aviation and Spirit Airlines confirm Airbus orders; Titan Aviation and Bain Capital Credit in $1 billion freight JV; new deliveries by CDB Aviation to Mexico and AerCap to Pakistan start-up; Russian and Chinese plane makers spread their wings.

 

Perspectives

Trevor Ricards, SVP Asset Trading, GECAS on the secondary equity market for securitizations






DVB's Kieran O'Keefe on the lease rate factor (LRF)
The decline in lease rates analysed
Virginia Fox on GECAS' risk model
Milestone's Greg Conlon on the rotorcraft business model
Peter Chang on relationships between OEMs and lessors
IBA's Stuart Hatcher on values and lease rates

Analysis

In the December 12th edition of Aviation Finance
In the final issue of 2019: we take a series of seasonal, end of year looks at key elements of the aircraft financing ecosystem, including: airline profitability; recruitment in the 25,000 person-strong global airline finance market; the 'Top 20' risk assessment by top aircraft finance executives; trends likely to affect aircraft lease rates in 2020. Interview with Trevor Ricards, SVP with responsibility for US Asset Trading at GECAS, on its options in the ABS market.

The November 28th 2019 edition of Aviation Finance
In the issue: Moody’s Investor Services says 'the aviation finance industry can take much credit in displaying the skill and discipline it has in managing the difficulties and challenges of the past year'; Also SMBAC's profits growth recovery; MAX edges closer to return.


The November 14th edition of Aviation Finance
In the issue: New GECAS CEO Greg Conlon speaks to Aviation Finance. Also: progress by Europe’s leading low cost carriers, with growth in RPKs. Marubeni Corporation and Mizuho Leasing's acquisition of Aircastle at a premium; Airborne Capital joins this year’s long list of ABS issuers.

 

From Our Latest Issues:

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Financing & Risk Strategies

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The October 31st edition of Aviation Finance
In the October 31st issue: There is an abundance of evidence to demonstrate the continued vibrancy of the commercial aviation industry and the aviation finance sector that supports it marked by developments in the securitisation market, which is close to hitting last year’s record level of activity. It is also supported by latest data from IATA and the huge order for 300 new aircraft by Indian LCC Indigo.


The October 17th edition of Aviation Finance
In the latest issue: While there are distinct differences in the business models behind the leading aircraft leasing platforms, it is evident that trading is a core strategic component in all of them. That was demonstrated at AFCDublin, 2019 this week. In this issue we focus on some of these. We also note the launch of three more ABS offerings in a busy Q4 securitisation market.


#AFCDublin 2019
October 15th 2019: #AFCDublin 2019 featured interviews with Aercap CEO Aengus Kelly and CDB Aviation's CCO Patrick Hannigan, conducted by Aviation Finance's contributing editor Joe Gill. Following an address by Virginia Fox, Head of Risk of GECAS, on the ever-important matter of risk management, AFC2019 features the first ever CFO Forum, featuring a panel of the world's top aircraft lessors on the 'finance function of the future', chaired by EY's Danny Buckley. More details: here.

 

Analysis

Apollo and Athene's acquisition of GECAS' PK AirFinance lending unit
Apollo Global Management and Athene Holding Ltd are to purchase PK AirFinance with Apollo acquiring the PK AirFinance aircraft lending platform and Athene acquiring PK AirFinance’s existing portfolio of loans. Alec Burger, GE Capital President & CEO, said, “Apollo’s vast lending experience, complementary platforms, and exceptional track record across diversified assets and geographies make it the ideal partner to accelerate PK AirFinance’s growth. This sale is aligned to GE Capital’s overall strategy to become smaller and simpler, and our commitment to reduce our assets by $10 billion in 2019 is now more than halfway complete".


The September 5th edition of Aviation Finance is published
In the latest issue: Latest speakers at annual conference of Aviation Finance in Dublin Castle, Ireland, on October 15th next. We note the continuing strong signs of enthusiasm for aviation assets in various forms, including BA’s return to the EETC market and the purchase of GECAS’ subsidiary PK Finance by Apollo Global Management and Athene.

The August 22nd edition of Aviation Finance is published
In the latest issue: Once again, the importance of trading as an inherent component of the aircraft leasing business model – a topic at the heart of the annual conference of Aviation Finance in Dublin Castle, Ireland, on October 15th next – is highlighted by industry leaders in connection with their reports to shareholders and other stakeholders. SMBC Aviation Finance, BOC Aviation and ALC have all remarked on its role as an intrinsic element of their business models.


The August 8th edition of Aviation Finance is published
In the latest issue: The significance of trading as an inherent component of the aircraft leasing business model – a topic at the heart of the annual conference of Aviation Finance in Dublin Castle, Ireland, on October 15th next – has been highlighted once again by leading exponents of the business. In their remarks about AerCap’s record Q2 both CEO Gus Kelly and CFO Pete Juhas emphasised the important of the trading role in creating a sustainable base for growing shareholder value, as opposed to ‘one-off’ gains.


CDB Aviation supplies 737-800 to NordStar Airlines, and is the first global lessor to place a new Airbus A320neo with an African airline, Air Seychelles
July 31st 2019: CDB Aviation announced the placement of a Boeing 737-800 aircraft on a long-term lease to a new customer in Russia, Joint-stock company NordStar Airlines, with airport bases in Krasnoyarsk and Moscow (Domodedovo).


GECAS supplies two Airbus A321neos to Ural - delivering the enhanced fuel efficiency of LEAP engines
July 31st 2019: GECAS will supply two Airbus A321neo aircraft to Ural Airlines. The LEAP-powered narrowbody aircraft - from the lessor’s orderbook – are due to be delivered in October and December of this year. With a current in-service fleet of 45 aircraft from the Airbus A320 family – including A319, A320 and A321 – the Russian operator now transports more than nine million passengers annually and is among the largest rapidly-developing Russian airlines.