- The platform will allow PIMCO and GECAS to acquire new and young aircraft For rent
- Provides funding to help Airlines companies modernize their fleets at a critical time for the aviation industry
NEWPORT BEACH, California and SHANNON, Ireland, October 19, 2020 (GLOBE NEWSWIRE) – PIMCO, one of the world’s leading fixed income investment managers, and GE Capital Aviation Services (GECAS), a lessor and business unit world’s leading provider of GE (NYSE: GE), announce that they have reached a preliminary agreement to develop an aircraft leasing platform to support up to $ 3 billion in financing of aviation assets. The transaction is subject to customary closing conditions and receipt of required regulatory approvals.
This strategic investment platform will enable clients advised by GECAS and PIMCO to acquire new and young fuel efficient aircraft to meet the needs of a diverse set of global airlines over many years.
The platform seeks to provide much-needed funding to airlines looking to modernize their fleets with young and new aircraft. The portfolio will initially focus on narrow-body aircraft while allowing the flexibility to invest in attractive opportunities in the widebody market. PIMCO and GECAS will take into consideration a range of investment criteria, including the assets and credit quality of an airline, as well as geographic factors.
PIMCO is already one of the world’s largest investors in aviation-backed debt and its presence in the aviation finance markets, combined with GECAS ‘leadership role in the aircraft leasing segment, will provide to this common platform enormous flexibility to provide financing to the global airline industry. GECAS will provide transactions for the platform, act as a servicer and provide asset management services for the platform.
“As the airline industry grapples with the effects of the COVID-19 pandemic, the PIMCO-GECAS platform will inject vital liquidity into this critical industry by providing financing solutions at a time when there is has fewer traditional financing options for airlines, ”said Dan Ivascyn. , director of investments for the PIMCO group. “Aircraft remain an attractive asset class in a critical infrastructure sector supported by strong long-term growth engines. GECAS ‘expertise as a world-class aircraft lessor aligns with our long-standing strategy of investing in aviation finance.
“We are delighted to partner with a leading institutional investor such as PIMCO in this strategic relationship that will enable opportunistic games to support our airline customers around the world,” said Greg Conlon, President and CEO by GECAS. “Although GECAS maintains a leading position in the sector, this platform will allow us to continue to provide our airline customers with the aircraft necessary to maintain their franchises. “
PIMCO is one of the world’s leading fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. Over the next 45+ years, the company has continued to bring innovation and expertise to our partnership with clients seeking the best investment solutions.
Since launching its first opportunistic credit vehicles over 15 years ago, PIMCO has developed a significant presence in alternative credit and private investment strategies. Our strategies include those that seek to identify value primarily in listed securities, drawing on fundamental and capital structure analysis, and strategies that seek to privately fund the debt and equity needs of companies. companies, asset owners and origination platforms. We invest globally in commercial and residential real estate and mortgage lending, high performing and distressed business lending and specialty financial markets.
Today, PIMCO has offices around the world and more than 2,500 professionals united by one goal: to create opportunities for investors in all environments. PIMCO is owned by Allianz SE, one of the world’s leading providers of diversified financial services. pimco.com
GE (NYSE: GE) moves the world forward by tackling its greatest challenges. By combining world-class engineering with software and analytics, GE helps the world work more efficiently, reliably and safely. For more than 125 years, GE has invented the future of industry and is today at the forefront of new paradigms in additive manufacturing, materials science and data analysis. GE employees are global, diverse and dedicated, operating with the utmost integrity and passion to fulfill GE’s mission and deliver to our customers. ge.com
GE Capital Aviation Services (GECAS) is one of the world’s leading aviation lessors and financiers. For over five decades, we’ve partnered with our clients to find solutions to their challenges and help their businesses thrive. Whether your need is for narrow or wide body aircraft, regional jets, turboprop, cargo ships, engines, helicopters or equipment, our name has become synonymous with relationships of trust, expertise in the field and ability to execute.
GECAS offers a wide range of financing products and services on these assets, including operating leases, purchase / lease contracts, capital markets and the management of aircraft spare parts. GECAS owns, maintains or has on order around 1,700 aircraft. GECAS serves 220 clients in more than 70 countries from a network of 17 offices around the world. gecas.aero
PIMCO is not affiliated with General Electric (GE) or GE Capital Aviation Services (GECAS).
With the exception of historical information and discussions contained herein, the statements contained in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks. , uncertainties and other factors that may cause actual results to differ materially, including performance of financial markets, investment performance of PIMCO sponsored investment products and separately managed accounts, investment performance in the aviation or aircraft-related, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider these factors. In addition, these forward-looking statements speak only as of the date on which such statements are made. None of PIMCO, GE or GECAS undertakes to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.
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