Voyager Aviation, a Dublin-based aircraft lessor, is working with Moelis as financial advisor to address its $415 million 8.5% unsecured notes maturing in August as the Covid-19 pandemic slashed demand for its mostly wide-body aircraft typically used for long-haul flights, according to sources. Voyager’s controlling shareholder Centerbridge Partners is working with Milbank as counsel, the sources said.
The lower demand and a lack of unencumbered assets make it challenging for Voyager to refinance its unsecured notes, of which Pimco holds a significant portion, according to sources. Voyager’s aircraft are financed with secured debt, they said.
A distressed exchange and debt equitization is likely, the sources said. The company has a $17.6 million interest payment due on Feb. 15.
The unsecured notes last traded in size at 55.75 on Nov. 25, 2020, according to TRACE.
Voyager has been trying to boost its liquidity. Most recently, it
converted an operating lease of cargo freighter Boeing 747-8F with AirBridgeCargo into a capital lease, following the
first such transaction with this client in December, freeing up “significant additional liquidity” for general corporate purposes.
In November 2014, Voyager, then
called Intrepid Aviation,
filed for an initial public offering to raise $150 million. The company
withdrew the plan in August 2018, a month after Centerbridge and investment firm Reservoir Capital Group
acquired a minority stake in aircraft financier Amedeo Capital Ltd., which made a minority investment in Voyager and also acquired Voyager’s U.S. management subsidiary. As part of the partnership, Amedeo started providing management and aircraft support services to Voyager.
Voyager has eight airline customers in seven countries worldwide, including Air France, Alitalia, Breeze Airways, Philippine Airlines, Cebu Pacific Air, Sichuan Airlines, Turkish Airlines and AirBridgeCargo, according to its
website. The company has about $2 billion of assets.
Voyager Aviation, Pimco and Milbank did not respond to requests for comment. Representatives for Centerbridge and Moelis declined to comment.
--Harvard Zhang, Ellen Schneider