Apollo Global Management LLC and Athene Holding Ltd. have agreed to buy PK AirFinance SA, an aviation lending business, from GE Capital Aviation Services Inc.
PK AirFinance is an aircraft lending business serving airlines, aircraft traders, lessors, investors and financial institutions globally.
Under the deal, Apollo will acquire the PK AirFinance aircraft lending platform and Athene will acquire PK AirFinance's existing portfolio of loans. PK AirFinance's team of investment professionals, who primarily focus on originations and syndications as well as underwriting and portfolio management, will transfer to Apollo upon completion of the transaction.
Financial details of the transaction were not disclosed, but a news release from General Electric Co. and Athene said $3.6 billion of PK AirFinance financing receivables that were held for sale in the second quarter are being sold at a premium to book value in the deal.
General Electric reportedly received a buyout offer from Apollo and from Starwood Capital Group for its PK AirFinance unit.
The deal is expected to close in the fourth quarter.
Citi and Goldman Sachs & Co. LLC provided financial advice, and Paul Weiss Rifkind Wharton & Garrison LLP and Clifford Chance LLP provided legal advice to GE Capital. Citi, RBC Capital Markets and Mizuho provided debt financing for the transaction, and RBC Capital Markets served as financial adviser to Apollo.
