Avolon to acquire aircraft leasing business of CIT Group

Avolon Holdings, the international aircraft leasing company and a wholly owned subsidiary of Bohai Capital Holding, the equipment and transportation lessor, signed an agreement to acquire the aircraft leasing business of CIT Group. The Transaction will create a leading aircraft leasing business with an owned, managed and committed fleet of 910 aircraft valued at over US$43bn. Avolon will acquire total assets of US$11.1bn as of 30 June 2016 and associated liabilities. Avolon will pay US$10.0bn, a premium of 6.7% to the 30 June 2016 NAV of US$9.4bn. The purchase price is subject to adjustment for changes in NAV between 30 June 2016 and the closing date of the Transaction. The Transaction will be financed by a combination of Avolon’s cash; new equity contributed by Bohai; and acquisition debt financing of US$8.5bn that has been committed by Morgan Stanley & Co. LLC and UBS Investment Bank. The Transaction is subject to customary closing conditions and required regulatory approvals and is expected to close in the first quarter of 2017.