Aircraft leasing firm Azorra has raised $400m (£315m) through a new bond issue and refinanced part of its existing debt, in a move it says strengthens its finances and supports future growth.
The US-based company said the eight-year senior unsecured notes, due in 2034, were issued with a 6.25% interest rate and attracted strong demand from investors. The bonds are rated below investment grade by the main credit rating agencies.
Alongside the bond sale, Azorra successfully repriced and increased its senior secured Term Loan B facility. The loan margin was reduced to 2.5 percentage points above the three-month SOFR benchmark, cutting borrowing costs compared with previous terms. The facility was also expanded by $100m to $637.8m.
Lower costs and greater flexibility
Azorra said the two transactions together would improve its balance sheet, lower funding costs and give the company greater financial and operational flexibility. The revised loan is secured against a portfolio of 34 aircraft and five engines.
The proceeds will be used mainly to repay existing debt and for general corporate purposes, including the purchase of additional aircraft and engines.
John Evans, Azorra’s chief executive, said the deals showed continued confidence from investors in the company’s strategy and long-term prospects.
Chief financial officer Alan Stanford said the refinancing would allow Azorra to move quickly on market opportunities while maintaining what he described as a resilient capital structure.
The announcement comes as demand for aircraft leasing remains strong, with airlines seeking to manage costs and expand capacity without committing to large upfront purchases.
