US$300 MILLION SENIOR UNSECURED NOTES
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NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, EXCEPT TO "QUALIFIED INSTITUTIONAL BUYERS" ("QIBs") IN RELIANCE ON RULE 144A ("RULE 144A") UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR IN OR INTO ANY OTHER JURISDICTION IF SUCH AN ACTION IS PROHIBITED BY APPLICABLE LAW.
AVATION PLC
("Avation" or "the Company")
US$300 MILLION SENIOR UNSECURED NOTES
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company announces that its wholly owned subsidiary, Avation Group (S) Pte. Ltd., has successfully priced US$300 million of senior unsecured notes due 15 May 2031 with a coupon of 8.5% (the "Notes") to be issued from its new US$1,000,000,000 global medium term note programme (the "Programme"). The Programme is guaranteed by the Company.
Avation intends to use the proceeds of the Notes to repay the outstanding US$298 million of 8.25% senior unsecured notes due 2026 along with issuance expenses. The Notes are expected to be issued on 6 November 2025, subject to customary closing conditions. The Notes are rated B by Fitch Ratings, B2 by Moody's and B by S&P Global Ratings. The rating agencies also provide corporate ratings for Avation of B (outlook stable), B1 (outlook stable) and B- (credit watch positive) respectively.
Jeff Chatfield, Executive Chairman of Avation said "The Company is pleased to have priced this bond issuance with a term of 5.5 years, providing it with long-term stable financing. The Company has now reset its near-term debt maturities and is back to a stable growth mode. Over the last 5 years the Company has worked to de-lever and in that time has paid off approximately US$420 million of debt, reducing the net debt to equity ratio from 5.9x in FY21 to 2.5x in FY25. The Notes are complementary to the Company's secured debt borrowings and are a key part of optimising Avation's capital structure. The successful issue of the Notes will mitigate a 2026 bond expiry risk."
-ENDS-
FCA / ICMA stabilization applies.
This announcement is not an offer to sell or a solicitation of any offer to buy the securities of Avation Group (S) Pte. Ltd. or Avation PLC (the "Securities") in the United States, European Economic Area (including the United Kingdom), Japan, Hong Kong, Luxembourg, Singapore, or in any other jurisdiction where such offer or sale would be unlawful.
The Securities have not been and will not be registered under the Securities Act, or the laws of any state of the United States. Consequently, the Securities may not be offered, sold or otherwise transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. No public offering of the Securities is being or will be made in the United States.
This communication is being distributed to and is only directed only at (i) persons who are outside the United Kingdom; (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); (iii) high net worth entities falling within Article 49(2)(a) to (d) of the Order; and (iv) other persons to whom it may lawfully be communicated (all such persons in (i), (ii), (iii) and (iv) above together being referred to as "relevant persons"). Any invitation, offer or agreement to subscribe for, purchase or otherwise acquire securities will be engaged in only with relevant persons. Any person who is not a relevant person should not act or rely on this communication or any of its contents.
In any member state of the European Economic Area, this communication is only addressed to and is only directed at qualified investors in such member state within the meaning of the Prospectus Regulation EU 2017/1129 (the "Prospectus Regulation"), and no person that is not a qualified investor may act or rely on this communication or any of its contents. In the United Kingdom, this communication is only addressed to and is only directed at qualified investors within the meaning of the Prospectus Regulation as it forms part of domestic law, and no person that is not a qualified investor may act or rely on this communication or any of its contents.
Enquiries:
Avation PLC - Jeff Chatfield, Executive Chairman +65 6252 2077
Avation welcomes shareholder questions and comments and advises the email address for questions is: investor@avation.net and the Company provides an investor Q & A during the conference call associated with release of results. The head office telephone number is +65 6252 2077.
Notes to Editors: Avation PLC is an aircraft leasing company, headquartered in Singapore, owning and managing a fleet of commercial passenger aircraft which it leases to airlines around the world. More information on Avation is available at www.avation.net.
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