Azorra Announces Closing of $1 Billion in Financings

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Azorra Aviation Holdings, LLC (“Azorra”) today announced that it had closed an offering of $550 million of senior unsecured notes and entered into a $464 million Term Loan B facility.

Senior Unsecured Notes

Azorra Finance Limited, a wholly-owned subsidiary of Azorra, issued $550 million aggregate principal amount of its 7.750% senior unsecured notes due 2030 (the “Notes”). The notes will be guaranteed by Azorra and certain of its subsidiaries. Proceeds from the Notes will be used to repay existing debt and for general corporate purposes, which may include financing the acquisition of new aircraft deliveries.

The Notes are rated by Moody’s (B2), S&P Global Ratings (BB-) and Fitch Ratings (and BB-). The rating agencies also provided initial corporate ratings for Azorra of BB-, BB- and Ba3, respectively.

The rating agencies also provided Terminal B ratings for Azorra of BB, BB, and Ba2. 

Term Loan B Facility

Azorra entered into a Term Loan B facility in an aggregate principal amount of $464 million.  The term loan matures in October 2029 and will bear interest at a variable rate per annum, at Azorra’s option, of either three-month SOFR (with a floor of 0.0%) plus 350 basis points, or an alternative base rate plus 250 basis points. The term loan will be secured by a 28-asset portfolio consisting of 12 A220-300s, 6 E195-E2s, 2 E190-E2s, 6 E195-E1s, one E170-E1 and one PW1900 engine.

Citibank, N.A. served as Sole Structuring Agent and Global Coordinator for the Term Loan B Facility, and Citibank N.A., BNP Paribas, Natixis, New York Branch, Fifth Third Bank N.A. and Société Générale acted as Joint Lead Arrangers and Joint Bookrunners. Deutsche Bank Securities Inc., PNC Bank N.A., BofA Securities, Inc., MUFG Bank, Ltd. and Royal Bank of Canada were Co-Arrangers.

Azorra Commentary

John Evans, CEO and Founder of Azorra, said, “These inaugural Term Loan B and unsecured note issuances mark a significant milestone in Azorra’s journey towards a balance sheet financing model. The success of these issuances increases our cashflows, liquidity and operational flexibility.  We extend our heartfelt gratitude to all who participated. Together, we are building a stronger future for our company.”

Alan Stanford, CFO of Azorra, stated, “This is a significant achievement in our long-term financing strategy. This step reflects the strength of our business and the confidence of the markets. It positions us for continued growth and enhances our ability to provide innovative fleet solutions to our global customer base.”

Claudia Ziemer, SVP Finance of Azorra, added, “These successful transactions mark a significant milestone for the company and is expected to improve Azorra’s cash flows and optimize our balance sheet.  We are proud of our strong initial ratings, which reflect the financial strength of our business. The continued support from our banking partners is now bolstered by the debt investment community.”  

Forward Looking Statements

This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. We do not represent or warrant that such forward-looking statements will be achieved or prove to be correct.  Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

No Offer or Solicitation

The Notes and related guarantees have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act“), or the securities laws of any jurisdiction and may be offered or sold only in a transaction exempt from, or not subject to, the registration requirements of the Securities Act. The Notes were offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and outside the United States to non-U.S. persons in offshore transactions in reliance on Regulation S under the Securities Act.

This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer of the Notes will be made only by means of a private offering memorandum.

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ABOUT AZORRA

Azorra is a relationship-driven aircraft lessor that provides leasing, financing, fleet transition and asset management solutions to aircraft investors, financiers and airline operators worldwide. Azorra’s multi-cultural team reflects the global markets that we serve and includes core competencies in aviation law, aircraft finance, maintenance, marketing, sales, trading and leasing.    

Our team is led by seasoned veterans having a shared history of success and is complemented with young professionals who bring fresh perspective, ideas and enthusiasm. Azorra currently owns and manages a fleet of more than 110 aircraft on lease to more than 35 operators in 30 countries around the world, with total commitments of more than 160 aircraft including orders for new Airbus A220-100/300 aircraft and Embraer E190/195-E2 aircraft. The company is headquartered in Fort Lauderdale, Florida, and has an office in Dublin, Ireland.    

For additional information, please visit us at www.azorra.com or on LinkedIn.