HNA Group Unit Avalon Buys US Firm's Aircraft Leasing Assets for USD10 Billion
Yicai Global
/SOURCE : Yicai
HNA Group Unit Avalon Buys US Firm's Aircraft Leasing Assets for USD10 Billion

(Yicai Global) Oct. 10 -- Avolon Holdings Ltd., part of Chinese aviation and investment conglomerate HNA Group, has concluded a USD9.995 billion deal with US lender CIT Group Inc. to acquire all of its aircraft leasing assets, making it the third largest aircraft leasing company in the world.

The investment target was 100 percent equity in CIT subsidiary, aircraft leasing firm C2 Aviation Capital Inc., which operates a fleet of 467 planes with an average age of 5.9 years, according to an announcement by parent company Bohai Financial Investment Holding Co. [SHE:000415]. Bohai Financial wholly acquired Dublin-based Avolon last year.

Morgan Stanley & Co. LLC and UBS Investment Bank will provide loans of up to USD8.5 billion. HNA Group, Bohai Financial's controlling shareholder, will act as guarantor for the acquisition.

The acquisition is still subject to the approval of Chinese and US regulatory authorities and will also need to pass reviews in the US, Brazil, Bulgaria, Colombia, South Korea, Mexico, Russia, South Africa and other countries.

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