AerCap to Sell AeroTurbine Subsidiary to ILFCAmsterdam - AerCap Holdings N.V. ("AerCap", NYSE: AER) announced today that it has entered into an agreement with International Lease Finance Corporation (ILFC) for the sale of its wholly-owned subsidiary AeroTurbine, Inc. The closing of the AeroTurbine transaction, which is expected to occur in the coming months, remains subject to certain closing conditions and regulatory approvals.
The purchase price for all of the outstanding shares of AeroTurbine is $228 million. AerCap will continue to guarantee until December 14, 2011 AeroTurbine's obligations under its $425 million revolving credit facility, of which approximately $298.6 million was drawn as of July 31, 2011. ILFC will, in turn, provide AerCap with a guarantee of any payments that AerCap may be required to make under the credit facility pursuant to such guarantee until such date. It is expected that AeroTurbine will seek to amend and restate the credit facility in its entirety prior to December 14, 2011.
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"AerCap acquired AeroTurbine in 2006 in order to strengthen the company's expertise in managing older aircraft. Over the last five years, we have been very successful in reducing the number of older aircraft in our portfolio and AerCap now boasts one of the youngest fleets in the industry," says AerCap's CEO Aengus Kelly. Mr. Kelly further said that "AerCap expects to use the capital released from the sale of AeroTurbine to pursue transactions that will generate long term value for our shareholders."
Source : AerCap Holdings N.V.