23 Nov 2020

Irish Aircraft Leasing Newsletter 23 November

Avolon Announces Debt Tender Offers Avolon has priced a private offering by its wholly owned subsidiary, Avolon Holdings Funding (AHFL), for $1 billion 4.25% senior unsecured notes due 2026, which are fully and unconditionally guaranteed by Avolon. Net proceeds from the offering, which will close on or about 23 November, 2020, will be used to fund the previously announced cash tender offers by AHFL and Park Aerospace to purchase certain notes previously issued by the Issuers and to pay fees and expense. Castlelake Launches Aviation Lending Program Castlelake announced the launch of a new Aviation Lending Program and the addition of Armin Rothauser to lead its development. This strategy seeks to provide financing solutions to buyers of commercial aircraft to enable them to navigate periods of disruption in the aviation sector while continuing to execute on their business plans. "The aviation lending program is a natural extension of Castlelake's longstanding investment strategy in aviation while supporting our valued aviation-related partners across the industry," said Rory O'Neill, chief executive officer and managing partner of Castlelake. "We are pleased to welcome Armin to the Castlelake family, where his deep expertise will enhance our team's capabilities as we rollout this new program." Engine Lease Finance's Joe O'Brien to retire Joe O’Brien, the deputy CEO & chief commercial officer (CCO) of Engine Lease Finance has announced his retirement after 14 years with the engine lessor and 16 years before that with parent company BTMU Capital Corporation. Joe has also served as board member for ELF since 2000. Since joining ELF as EVP sales and CCO in 2006, Joe led the sales team to more than $3 billion in engine acquisitions through sale and leaseback, OEM orders and various collaborations. Julian Jordan, executive vice president & head of new business has assumed responsibility for all engine acquisitions and management. Falko Regional Aircraft sells last RJ85 from portfolio Falko Regional Aircraft, “Falko” was formed on July 15th 2011 when funds managed by Fortress Investment Group completed the purchase of BAE Systems Asset Management and its associated portfolio which included 103 jets consisting of 14 BAe 146 & 89 Avro RJ. On the October 29th 2020 Falko announced the last RJ was sold from its portfolio. Norwegian initiates a reorganisation plan with its daughter companies Norwegian Air International and Arctic Aviation Assets seeking protection under Irish Examinership Following the government of Norway’s decision to withhold further support from the airline, and the ongoing COVID-19 pandemic, Norwegian Air Shuttle announced it has decided to initiate an examinership process in Ireland relating to its subsidiary Norwegian Air International Limited (NAI), its wholly-owned asset company Arctic Aviation Assets DAC (AAA) and some of AAA’s subsidiaries; Norwegian will also enter in and get protection of the Irish Examinership process as a related party. Norwegian has chosen an Irish process since its aircraft assets are held in Ireland. Norwegian has taken this decision in the interest of its stakeholders. The purpose of the process is to reduce debt, rightsize the fleet and secure new capital. This reorganisation process protects the assets of the Norwegian group while allowing the company to focus on the rightsizing of the group. The process is estimated to take up to five months. Jacob Schram Norwegian CEO said “Seeking protection to reorganise under Irish law is a decision that we have taken to secure the future of Norwegian for the benefit of our employees, customers and investors. Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.” Acumen Aviation © 23 November 2020 All Rights Reserved.