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 (Ba3), S&P Global Ratings (BB-) and Fitch Ratings (and BB-). The rating agencies also provided initial corporate ratings for Azorra of Ba2, BB and BB, respectively.

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.”  

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