SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

General Electric (GE) neared a deal to sell its aircraft leasing business to AerCap for more than $30bn as per WSJ sources though details of the structuring are not known. Irish aircraft leasing company AerCap would see it combine with GE Capital Aviation Services (GECAS), one of the biggest jet-leasing companies which leases passenger aircrafts made by Boeing and Airbus as well as regional jets and cargo planes. GE has been working on disposing non-core assets with the CEO taking steps to turnaround the company. GECAS had assets worth $35.9bn ending Dec 2020 and AerCap has an enterprise value of $34bn and assets worth $42bn as per MarketWatch and Bloomberg. “The old world where you needed a leasing a company to support your manufacturing is gone… For AerCap, this could be something that’s too good to refuse.” Bloomberg Intelligence analyst George Ferguson said. He also added that by pooling assets, the new entity may be able to access the capital markets more cheaply than GECAS could acting under GE’s corporate umbrella.

GE’s 4.1% Perps were down 0.3 to 89.56, yielding 10.8% and AerCap’s 5.875% 2079s were down 0.7 to 101.2, yielding 5.5%.

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