Avation (AVAP) Investor Update summary

Transaction overview and financial update

• Launching a $300 million senior unsecured notes offering to refinance 2026 notes and extend debt maturity to 2031, maintaining a net debt-to-equity ratio of 2.5x and strong liquidity with $148 million in cash.

• FY2025 revenue reached $110 million and adjusted EBITDA $107 million, both up ~20% year-over-year, with full fleet utilization and lease yields at 11.3%.

• Credit ratings for the new notes: Moody’s B2, S&P B (CreditWatch Positive), Fitch B.

Fleet and business model

• Manages 33 commercial aircraft with a weighted average age of 8.5 years and 3.9-year average remaining lease term; all aircraft currently utilized.

• Focuses on narrow-body, turboprop, and some wide-body aircraft, with a diversified customer base across 16 airlines in 14 countries.

• Maintains a valuable ATR order book with 10 firm orders and 24 purchase rights, providing long-term growth potential.

Market environment and growth strategy

• Aircraft leasing market is strong due to post-COVID travel recovery and global aircraft shortages, supporting high asset values and demand.

• Organic growth targeted through order book deliveries (2–3 ATRs per year) and selective narrow-body acquisitions; recent debt reduction of $400 million since COVID.

• Diversification and prudent customer concentration management are key, with ongoing efforts to broaden the airline client base.