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GE to Sell Corporate Aircraft Financing Portfolio to Global Jet Capital

October 06, 2015, 07:15 AM
Filed Under: Mergers & Acquisitions

GE announced that it has reached an agreement to sell its fixed-wing Corporate Aircraft financing portfolio in the Americas to Global Jet Capital, a provider of financing solutions for the private aircraft market.

“We are excited to sell our Corporate Air portfolio to Global Jet Capital, an up-and-coming player in the corporate aircraft space,” said Keith Sherin, GE Capital chairman and CEO.

The Corporate Air portfolio includes loans and leases as well as more than 300 fixed-wing aircraft across the U.S., Canada, Mexico and Latin America. Global Jet Capital will also retain a team of experienced GE employees who have been dedicated to this business.

“Global Jet Capital is a well-backed private equity player eager to expand its corporate aircraft portfolio,” Sherin said. “Their resources will provide tremendous value to the portfolio and greatly benefit our customers.”

As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets. GE and its Board of Directors have determined that market conditions are favorable to pursue these dispositions. GE will retain the financing businesses that directly relate to GE’s industrial businesses including GE Capital Aviation Services which primarily finances commercial aircraft.

With this transaction of approximately $2.5 billion in ending net investment (ENI), GE Capital has announced sales of about $97 billion year-to-date. When completed, the transaction will contribute approximately $0.3 billion of capital to the overall target of approximately $35 billion of dividends expected to GE under this plan (subject to regulatory approval).

The transaction is expected to close in stages over the next several months, subject to customary regulatory and other approvals.

Sherin added, “Today’s announcement is another testament to the speed and value we are delivering as we execute on our strategy to sell most of the assets of GE Capital.”

J.P. Morgan Securities LLC provided financial advice to GE and Shearman & Sterling LLP provided legal advice.

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