PIMCO & GECAS to Create $3 Billion Aviation Leasing Investment Platform
Newport Beach, California and Shannon, Ireland, (October 19, 2020) -- 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.
“As the airline industry struggles with the effects of the COVID-19 pandemic, the PIMCO-GECAS platform will inject essential liquidity into this critical industry by providing financing solutions at a time when there are fewer traditional financing options for airlines,” said Dan Ivascyn, PIMCO’s Group Chief Investment Officer. “Aircraft remain an attractive asset class in a critical infrastructure sector supported by solid long-term growth drivers. GECAS’ expertise as a world class aircraft lessor aligns with our longstanding investment strategy in aviation finance.”
"We are delighted to team up with a premier institutional investor such as PIMCO in this strategic relationship which will enable opportunistic plays to support our airline customers around the globe,” said Greg Conlon, President & CEO of GECAS. “While GECAS maintains an industry-leading position, this platform will ensure we can continue providing our airline customers with the aircraft needed to sustain their franchises.”
PIMCO is one of the world’s premier fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the 45+ years since, the firm continued to bring innovation and expertise to our partnership with clients seeking the best investment solutions.
Since launching its first opportunistic credit vehicles over 15 years ago, PIMCO has developed a significant presence in alternative credit and private investment strategies. Our strategies include those that seek to identify value primarily in listed securities, relying on fundamental and capital structure analysis, and strategies that seek to privately finance the debt and equity needs of companies, asset holders, and origination platforms. We invest globally across commercial and residential real estate and mortgage credit, performing and distressed corporate credit, and specialty finance markets.
Today, PIMCO has offices across the globe and 2,500+ professionals united by a single purpose: creating opportunities for investors in every environment. PIMCO is owned by Allianz SE, a leading global diversified financial services provider. pimco.com
GE (NYSE:GE) drives the world forward by tackling its biggest challenges. By combining world-class engineering with software and analytics, GE helps the world work more efficiently, reliably, and safely. For more than 125 years, GE has invented the future of industry, and today it leads new paradigms in additive manufacturing, materials science, and data analytics. GE people are global, diverse and dedicated, operating with the highest integrity and passion to fulfill GE’s mission and deliver for our customers. ge.com
GE Capital Aviation Services (GECAS) is a world-leading aviation lessor and financier. For over five decades, we have partnered with our customers to find solutions to their challenges and helped their businesses to thrive. Whether your need is for narrow or widebody aircraft, regional jets, turboprops, freighters, engines, helicopters or materials, our name has become synonymous with trusted relationships, domain expertise and an ability to execute.
GECAS offers a broad array of financing products and services on these assets including operating leases, purchase/leasebacks, capital markets, and airframe parts management. GECAS owns, services or has on order approximately 1,700 aircraft. GECAS serves 220 customers in over 70 countries from a network of 17 offices around the world. gecas.aero
PIMCO is not affiliated with General Electric (GE) or GE Capital Aviation Services (GECAS).
Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, the performance of aviation or aircraft-related investments, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. None of PIMCO, GE or GECAS undertakes any obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.