Feb. 20, 2014, 11:56 AM
- The ILFC purchase from AIG is still expected to close in Q2, says AerCap Holdings (AER -1.9%) in its Q4 earnings release. AIG will be an owner of 46% of AerCap after the transaction and will continue to report ILFC results on its books.
- AerCap adjusted EPS of $0.66 in Q4 gained 16% from a year ago, and full year adjusted EPS of $2.64 rose 35% from 2012.
- For 2013, the company purchased 38 aircraft for $1.8B. Committed future purchases as of the end of they ear are 44 aircraft for $3.5B. All committed purchases are on long-term leases with an average term of 11.8 years.
- Press release, Q4 results
Dec. 16, 2013, 6:20 AM
Dec. 13, 2013, 3:24 PM
- There are too many "unknowns" on a potential AerCap (AER +4%) deal to buy ILFC (AIG +1%) to figure out what AER's balance sheet and income statement would look like afterwards, says Well Fargo's Gary Liebowitz, but based on the company's recent history, he pretty certain about a few things.
- AER will NOT: 1) Overpay for aircraft 2) Subject itself to excessive residual value risk by retaining older jets 3) Impair its ability to sell aircraft, or 4) Expose itself to significant future funding risks.
- He retains his Buy rating on AER with a price target of $26-$27.
- Previous coverage of the potential deal
AER vs. ETF Alternatives
AerCap Holdings NV provides aircraft leasing & aviation finance services. Its activities also include aircraft asset management, corporate services, remarketing of aircraft, collecting rental, maintenance payments & monitoring aircraft maintenance.
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