PR: Pimco & Gecas to create $3bn aviation leasing investment platform

PRESS RELEASE 

– Platform will enable PIMCO and GECAS to acquire new and young aircraft to lease

– Provides financing to help airlines upgrade their fleets at critical time for the aviation industry

NEWPORT BEACH, Calif. and SHANNON, Ireland, Oct. 19, 2020 (GLOBE NEWSWIRE) — 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.

To read the full release, please click here.