Avolon Holdings Ltd.

Overview Key strengths Key risks One of the largest aircraft lessors in the world, with a fairly well diversified fleet and customer base. Slowing economic growth could constrain the recovery in global air traffic. Strong order book with modern technology and popular, in-demand aircraft. Disruption in the capital markets and rising interest rates will increase borrowing costs. Strong liquidity, with about $6.9 billion of borrowing capacity under its various facilities. Uncertainty over eventual ownership, given that it is currently 70% owned by Bohai, which is 40% owned by a Special Service Trust (who took over for the HNA Group during its reorganization), and 30% by Orix Aviation Systems Ltd. We believe the company will remain insulated from GALC, which has

...We continue to believe that Avolon's governance structure insulates it from any claims by Global Aircraft Leasing Co. Ltd. (GALC) or its lenders. We believe the company will remain insulated from GALC, which has bonds maturing on Sept. 15, 2024, that are now current. Avolon has publicly stated that it is focused on maintaining its insulation from GALC. The company is a 70% owned, indirect subsidiary of Bohai Leasing Co. Ltd. through GALC, with the other 30% owned by Orix Aviation Systems Ltd. GALC is owned by Bohai Leasing and Bohai is controlled by a Special Service Trust (which took over HNA Group Co. Ltd. in its reorganization), while the balance of its equity is publicly traded. GALC has about $1.9 billion of bonds that is services with dividends from Avolon. Thus far, GALC has paid about half of the interest payments on its bonds in cash and the other half in kind....

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