AerCap to issue bridge notes

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Operating lessor AerCap is in the market to issue $2.75 billion worth of bridge notes, PwC indicates.

The notes could be in connection with the acquisition of ILFC.

On 16 December 2013, AerCap agreed to acquire 100% of the common stock of ILFC, a wholly owned subsidiary of American International Group (AIG), in a $26 billion deal funded by UBS and Citibank.

As part of the transaction, AIG will provide AerCap with a committed five-year $1 billion unsecured revolving credit facility and will receive $3 billion in cash and 97,560,976 AerCap shares.

Upon closing of the transaction, AIG will own approximately 46% of the combined company, while existing AerCap shareholders will own the rest.

The transaction is expected to close in the second quarter of this year.