AerCap Holdings has completed its $7.6bn purchase of International Lease Finance Corporation (ILFC), the aircraft leasing business of American International Group (AIG).
The move ends AIG’s five-year effort to offload the leasing unit following the US rescue of the insurer in the 2008 financial crisis.
Under the deal, AIG has received $3bn in cash and a 46% stake in AerCap.
The value of the deal increased more than $2bn since it was announced in December last year, and AIG secured $2.4bn in net cash proceeds from the deal.
With this acquisition, AerCap will gain control of a fleet of 1,300 aircraft and $20bn order book.
AerCap CEO Aengus Kelly said: "With approximately $45bn of assets coupled with a diverse fleet of 1,300 aircraft and an attractive forward order book, AerCap will be a driving force in the industry."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAerCap Ireland Capital and AerCap Global Aviation Trust have completed a private placement offering $2.6bn of senior notes in three tranches, and the proceeds were used to finance a part of the acquisition.
AerCap’s new $2.75bn unsecured revolving credit facility replaced ILFC’s $2.3bn unsecured revolving credit facility, and the company secured a $1bn credit facility from AIG.
AIG now expects to record a pretax gain of about $2.2bn in the second quarter, which will add 97 cents per share to its book value.
As part of the deal, AIG president and CEO Robert H Benmosche and executive vice-president and CFO David L Herzog joined the board of AerCap.
