AerCap Holdings has completed its $7.6bn purchase of International Lease Finance Corporation (ILFC), the aircraft leasing business of American International Group (AIG).

The move ends AIG’s five-year effort to offload the leasing unit following the US rescue of the insurer in the 2008 financial crisis.

Under the deal, AIG has received $3bn in cash and a 46% stake in AerCap.

The value of the deal increased more than $2bn since it was announced in December last year, and AIG secured $2.4bn in net cash proceeds from the deal.

"With this acquisition, AerCap will gain control of a fleet of 1,300 aircraft and $20bn order book."

With this acquisition, AerCap will gain control of a fleet of 1,300 aircraft and $20bn order book.

AerCap CEO Aengus Kelly said: "With approximately $45bn 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."

AerCap Ireland Capital and AerCap Global Aviation Trust have completed a private placement offering $2.6bn of senior notes in three tranches, and the proceeds were used to finance a part of the acquisition.

AerCap’s new $2.75bn unsecured revolving credit facility replaced ILFC’s $2.3bn unsecured revolving credit facility, and the company secured a $1bn credit facility from AIG.

AIG now expects to record a pretax gain of about $2.2bn in the second quarter, which will add 97 cents per share to its book value.

As part of the deal, AIG president and CEO Robert H Benmosche and executive vice-president and CFO David L Herzog joined the board of AerCap.

Defence Technology