PIMCO & GECAS to Create $3 Billion Aviation Leasing Investment Platform
October 19 2020 - 8:00AM
PIMCO, one of the world’s premier fixed income investment managers,
and GE Capital Aviation Services (GECAS), a world-leading lessor
and business unit of GE (NYSE: GE), announce that they have reached
a preliminary agreement to develop an aviation leasing platform to
support up to $3 billion in aircraft asset financings. The
transaction is subject to customary closing conditions and receipt
of required regulatory approvals.
This strategic investment platform will enable GECAS and
PIMCO-advised accounts to acquire new and young fuel-efficient
aircraft to meet the needs of a diverse set of global airlines over
many years.
The platform looks to provide much-needed financing for airlines
which are looking to upgrade their fleets with young and new
aircraft. The portfolio will initially focus on narrowbody aircraft
while allowing flexibility to invest in attractive opportunities in
the widebody market. PIMCO and GECAS will consider a range of
investment criteria including an airline’s assets and credit
quality and also geographic factors.
PIMCO is already one of the world’s largest investors in
aviation-backed debt and its presence in aviation financing markets
combined with GECAS’ leadership role in the aircraft-leasing
segment will provide this joint platform enormous flexibility to
provide funding to the global airline industry. GECAS will source
transactions for the platform, act as servicer and provide asset
management services for the platform.
“As the airline industry struggles with the effects of the
COVID-19 pandemic, the PIMCO-GECAS platform will inject essential
liquidity into this critical industry by providing financing
solutions at a time when there are fewer traditional financing
options for airlines,” said Dan Ivascyn, PIMCO’s Group Chief
Investment Officer. “Aircraft remain an attractive asset class in a
critical infrastructure sector supported by solid long-term growth
drivers. GECAS’ expertise as a world class aircraft lessor aligns
with our longstanding investment strategy in aviation finance.”
“We are delighted to team up with a premier institutional
investor such as PIMCO in this strategic relationship which will
enable opportunistic plays to support our airline customers around
the globe,” said Greg Conlon, President & CEO of GECAS. “While
GECAS maintains an industry-leading position, this platform will
ensure we can continue providing our airline customers with the
aircraft needed to sustain their franchises.”
About PIMCO
PIMCO is one of the world’s premier 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. In the 45+ years since, the firm 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, relying on fundamental and capital structure
analysis, and strategies that seek to privately finance the debt
and equity needs of companies, asset holders, and origination
platforms. We invest globally across commercial and residential
real estate and mortgage credit, performing and distressed
corporate credit, and specialty finance markets.
Today, PIMCO has offices across the globe and 2,500+
professionals united by a single purpose: creating opportunities
for investors in every environment. PIMCO is owned by Allianz SE, a
leading global diversified financial services provider.
pimco.com
About GE
GE (NYSE:GE) drives the world forward by tackling its biggest
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 today it leads new paradigms in additive
manufacturing, materials science, and data analytics. GE people are
global, diverse and dedicated, operating with the highest integrity
and passion to fulfill GE’s mission and deliver for our customers.
ge.com
About GECAS
GE Capital Aviation Services (GECAS) is a world-leading aviation
lessor and financier. For over five decades, we have partnered with
our customers to find solutions to their challenges and helped
their businesses to thrive. Whether your need is for narrow or
widebody aircraft, regional jets, turboprops, freighters, engines,
helicopters or materials, our name has become synonymous with
trusted relationships, domain expertise and an ability to
execute.
GECAS offers a broad array of financing products and services on
these assets including operating leases, purchase/leasebacks,
capital markets, and airframe parts management. GECAS owns,
services or has on order approximately 1,700 aircraft. GECAS serves
220 customers in over 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).
Except for the historical information and discussions contained
herein, statements contained in this news 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
could cause actual results to differ materially, including the
performance of financial markets, the investment performance of
PIMCO’s sponsored investment products and separately managed
accounts, the performance of aviation or aircraft-related
investments, general economic conditions, future acquisitions,
competitive conditions and government regulations, including
changes in tax laws. Readers should carefully consider such
factors. Further, such forward-looking statements speak only on the
date at which such statements are made. None of PIMCO, GE or GECAS
undertakes any obligation to update any forward-looking statements
to reflect events or circumstances after the date of such
statements.
PIMCO Media ContactMichael Reid+1 212 597
1301michael.reid@pimco.com
GE Investor ContactSteve Winoker+1 617 443
3400swinoker@ge.com
GE Media ContactMary Kate Mullaney+1 202 304
6514marykate.mullaney@ge.com
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