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Aircraft lessor Avolon launches $300 million IPO

Published 01/12/2014, 13:51
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DUBLIN (Reuters) - Aircraft leasing company Avolon Holdings set out plans on Monday to list shares on the New York Stock Exchange and raise $286 million (182.1 million pounds) to $314 million for shareholders, the Dublin-based firm said on Monday.

Avolon, backed by private equity firms Cinven Ltd, CVC Capital Partners Ltd and Oak Hill Capital Partners, as well as Singapore's sovereign wealth fund, set its initial public offering (IPO) price at $21 to $23 per share.

The company, which leases aircraft and manages leasing services for airlines and aircraft investors, said it will offer just under a fifth of its outstanding shares in the IPO, giving it an equity value of about $1.8 billion.

Avolon has also raised $4.2 billion in debt, according to its registration statement filed with the U.S Securities and Exchange Commission.

Avolon registered with financial regulators in June for an IPO in the United States, but was then approached by China Investment Corp (CIC) and AVIC Capital Co Ltd (SS:600705).

The companies were looking to buy Avolon for between $4 billion and $5 billion but Reuters reported in October that the talks had ended.

Reuters reported in March that Avolon was preparing for an IPO this year, with aviation drawing interest from longer-term investors such as insurers and pension funds who are hoping to boost yields.

Avolon had a fleet of 227 aircraft, including 93 it has committed to acquiring, at the end of September, serving 49 customers in 27 countries. Since its launch in 2010, the company has raised more than $7 billion in capital.

Avolon's focus is on single-aisle aircraft made by Boeing Co (N:BA) and Airbus Group (PA:AIR). Its customers include American Airlines Group Inc (O:AAL), Air France-KLM (PA:AIRF), Ryanair Holdings Plc (I:RYA) and India's .

JPMorgan (N:JPM), Morgan Stanley (N:MS) and Citigroup (N:C), UBS Securities LLC and Wells Fargo Securities are acting joint book-running managers, the company said.

(Reporting by Padraic Halpin; editing by Tim Hepher and David Clarke)

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