Orix to acquire 30% stake in Avolon with an enterprise value of US$23.7 billion

Avolon, the international aircraft leasing company, has announced that ORIX Corporation, through its wholly owned subsidiary ORIX Aviation Systems (ORIX Aviation), has entered into an agreement to acquire a 30% stake in Avolon from Bohai Capital (Bohai). The Transaction is subject to customary closing conditions and Bohai shareholder approval. Bohai’s largest shareholder, HNA Group, has provided its commitment to the Transaction. The Transaction is expected to complete in the fourth quarter of 2018.

Transactions Highlights
‒ ORIX Aviation to acquire a 30% shareholding in Avolon for US$2.2 billion, based on March 31, 2018 NAV subject to customary closing adjustments
‒ Transaction implies an Avolon enterprise value of US$23.7 billion, as at March 31, 2018
‒ ORIX is rated A-/A3/A- by Fitch, Moody’s and S&P respectively. For the 12 months to March 31, 2018 ORIX reported revenue of US$25.6 billion and net income of US$2.8 billion.
‒ Diversifies and strengthens the financial profile of Avolon’s shareholder base

‒ Scale investment from an experienced sector participant highlights the attractiveness of the aircraft leasing sector, the Avolon platform and management team
‒ Governance structure enhances protections for minority shareholder and, indirectly, debt investors
‒ Facilitates positive credit rating momentum at Avolon
‒ Enhances Avolon’s profile in the Japanese financial markets and creates the opportunity for further collaboration with ORIX Aviation, a S&P ranked aircraft lessor, asset manager and trading company.

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