News

Amsterdam, Netherlands – AerCap Holdings N.V. has completed its previously announced acquisition of International Lease Finance Corp. (ILFC) from American International Group Inc. (AIG). Under the terms of the agreement, AerCap paid AIG .0 billion in cash and 97,560,976 AerCap ordinary shares, which represents an approximately 46% ownership position in AerCap's ordinary share capital. The total value of the consideration is approximately U.S. .6 billion, based on AerCap’s closing price per share of .01 on May 13, 2014.

 

In connection with the acquisition, AerCap Ireland Capital Ltd. and AerCap Global Aviation Trust, each a wholly-owned subsidiary of AerCap, completed their previously announced offering of .6 billion aggregate principal amount of senior notes. The net proceeds of the private placement were used to finance part of the consideration payable in connection with the acquisition.

 

AerCap's new .75 billion four-year unsecured revolving credit facility became available as of the closing of the acquisition, replacing ILFC's .3 billion unsecured revolving credit facility. Additionally, as part of the transaction, AerCap procured from AIG a committed five-year .0 billion unsecured revolving credit facility.

 

AerCap's CEO Aengus Kelly commented on the completion of the acquisition: "With approximately billion 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. As such, we are well positioned to offer our customers on a global basis an unprecedented portfolio of best-in-class aircraft, while providing our shareholders tremendous growth prospects in the coming years. Further, with our new colleagues from ILFC, we are truly excited about the prospects for the combined company with ample liquidity and capital resources to provide future growth to benefit all of our stakeholders."

 

Headquartered in Amsterdam, AerCap has 1,300 owned and managed aircraft in its current fleet and 363 high-demand, fuel-efficient aircraft on order. AerCap serves over 200 customers in more than 90 countries with comprehensive fleet solutions and provides part-out and engine leasing services through its subsidiary, AeroTurbine Inc.

 

“We are very pleased to have closed on the sale of ILFC,” said Robert H. Benmosche, president and CEO of AIG. “AerCap is a global leader in the aircraft leasing industry, and I believe that this transaction creates a solid partnership for the business and positions it for continued market leadership. However, the aircraft leasing business is not core to our insurance operations, and for this reason we agreed to sell ILFC. While the ILFC name will no longer exist, its deep roots and legacy will continue to live on with AerCap.”

 

In connection with the transaction, Benmosche and David L. Herzog, AIG CFO, have joined AerCap’s board of directors.

 

Sources: AerCap, AIG