RTTNews | Mar 10, 2021 06:50AM EST

06:49 Wednesday, March 10, 2021 (RTTNews.com) - Irish aircraft-leasing group AerCap Holdings N.V. (AER) announced Wednesday that it has entered into a definitive agreement with General Electric (GE), under which AerCap will acquire 100% of GE Capital Aviation Services (GECAS), GE's aircraft-leasing business. The deal is reportedly valued at more than $30 billion.

The combined company will be an industry leader across all areas of aviation leasing, with over 2,000 owned and managed aircraft, over 900 owned and managed engines, over 300 owned helicopters and approximately 300 customers around the world.

AerCap and GECAS both have industry-leading teams, attractive portfolios, diversified customer bases and order books of the most in-demand new technology assets.

Under the terms of the agreement, which has been unanimously approved by the boards of directors of AerCap and GE, GE will receive 111.5 million newly issued AerCap shares, $24 billion of cash and $1 billion of AerCap notes and/or cash.

Citi and Goldman Sachs have provided AerCap with $24 billion of committed financing for the transaction.

Upon completion of the transaction, GE is expected to own approximately 46% of the combined company and will be entitled to nominate two directors to the AerCap Board of Directors. The combined company will retain the name AerCap, and GECAS will become a business of AerCap.

The transaction will enhance many of AerCap's key credit metrics, as the combined company will have stronger cash flows and a more diversified revenue and customer base. AerCap expects to maintain its current investment grade credit ratings with S&P, Moody's and Fitch.

The transaction is subject to approval by AerCap shareholders, receipt of necessary regulatory approvals and satisfaction of other customary closing conditions. The transaction is expected to close in the fourth quarter of 2021.

Read the original article on RTTNews ( https://www.rttnews.com/3176292/aercap-to-acquire-ge-capital-aviation-services-quick-facts.aspx)

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