NEW YORK, June 11, 2021 /PRNewswire/ -- CIT Group Inc.
(NYSE: CIT) today announced it is selling its aviation loan
portfolio to KKR. This is related to a previously announced
definitive agreement for a portfolio that has a committed loan
balance of nearly $800 million across
more than 50 loans for approximately 60 commercial aircraft. The
loans have an average yield in the mid-single digits and an average
term remaining of approximately four years.
The portfolio will be serviced by AV AirFinance Limited (AV
AirFinance), a global commercial aviation loan servicer established
by a team of experienced industry professionals together with KKR.
As part of the transaction, certain members of CIT's aviation team
will also join AV AirFinance where they will focus on servicing and
originating loans.
"We are pleased to have reached an agreement with a team that
understands the aviation lending business and will serve customers
well," said Phil Robbins, CIT
President of Asset Management and Capital Markets. "This
transaction allows CIT to rebalance our portfolio mix and reinvest
in core businesses."
Dan Pietrzak, Partner and Co-head
of Private Credit at KKR, commented: "The purchase of this loan
portfolio from CIT will be used to seed the launch of our aviation
lending business in partnership with AV AirFinance. This
transaction marks an exciting new expansion of our asset-based
finance strategy into directly originated and held commercial
aviation loans, and we believe AV AirFinance is well positioned to
become a premier lender for the global commercial aviation
market."
The majority of loans have been transferred with the remaining
amount expected to be completed by the end of the second quarter of
2021. Upon its completion, CIT will have fully exited its aircraft
lending business and remains committed to providing banking and
advisory services as part of its core Aerospace, Defense and
Government Services business.
The transaction is being funded by separate accounts managed by
KKR.
About CIT
CIT is a leading national bank focused on empowering businesses
and personal savers with the financial agility to navigate their
goals. CIT Group Inc. (NYSE: CIT) is a financial holding company
with over a century of experience and operates a principal bank
subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The
company's commercial banking segment includes commercial financing,
community association banking, middle market banking, equipment and
vendor financing, factoring, railcar financing, treasury and
payments services, and capital markets and asset management. CIT's
consumer banking segment includes a national direct bank and
regional branch network. Discover more at cit.com/about.
About KKR
KKR is a leading global investment firm that offers alternative
asset management and capital markets and insurance solutions. KKR
aims to generate attractive investment returns by following a
patient and disciplined investment approach, employing world-class
people, and supporting growth in its portfolio companies and
communities. KKR sponsors investment funds that invest in private
equity, credit and real assets and has strategic partners that
manage hedge funds. KKR's insurance subsidiaries offer retirement,
life, and reinsurance products under the management of The Global
Atlantic Financial Group. References to KKR's investments may
include the activities of its sponsored funds and insurance
subsidiaries. For additional information about KKR & Co. Inc.
(NYSE: KKR), please visit KKR's website at www.kkr.com and on
Twitter @KKR_Co.
About AV AirFinance Limited
AV AirFinance Limited is a commercial aviation loan servicer
established in partnership with KKR. AV AirFinance provides secured
financing solutions to airlines, lessors, manufacturers, and
investors. The team at AV AirFinance has decades of experience
structuring commercial aircraft loans and, through its partnership
with KKR, has the financial strength and the ability to provide
competitive financing along with knowledge to successfully
participate in the global commercial aviation lending space. AV
AirFinance maintains offices in Ireland and the US. For more information,
please visit www.avairfinance.com.
Media Contacts:
For CIT:
Gina Proia
(212) 771-6008
gina.proia@cit.com
For KKR:
Cara Major or Miles Radcliffe-Trenner
(212) 750-8300
media@kkr.com
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SOURCE CIT Group Inc.