Tag: Holding (Page 2 of 3)

Boeing and EgyptAir Maintenance & Engineering Sign MRO Service Agreement

November 17, 2019 / WIL BALDWIN

Supply chain deals include Landing Gear Exchange and Quick Engine Change kit solutions
Companies also establish agreement to add regional MRO provider to Boeing’s growing global network

DUBAI, United Arab Emirates, Nov. 17, 2019 — Boeing [NYSE:BA] and EGYPTAIR MAINTENANCE & ENGINEERING (EGME) today announced agreements that will approve the Cairo-based MRO as Boeing’s first maintenance supplier in Africa and the Middle East region. The agreement enables EGME to provide aircraft, engines and component maintenance services and solutions to Boeing customers.

EGME will also receive landing gear exchange and overhaul support through the Boeing Landing Gear Exchange Program. The program provides flexible exchange solutions that allow customers to quickly repair and replace serviceable landing gear in hours.

Boeing will also supply parts for a Quick Engine Change kit. The kit includes hardware and components used to efficiently build up a spare engine to service-ready condition, lowering the maintenance time required to replace an engine and return aircraft to service.

“EGYPTAIR is optimizing operations for our growing fleet, which includes a sixth 787-9 Dreamliner aircraft, to always deliver a better experience for our customers,” said Ahmed Adel, chairman and CEO of EGYPTAIR Holding Company. “We are able to leverage the strength of a global supply chain network and increase efficiency by continuing to partner with Boeing.”

EGYPTAIR’s maintenance, repair and overhaul (MRO) subsidiary, EGYPTAIR Maintenance & Engineering (EGME), also signed a supplier agreement that will allow EGME to support Boeing’s customers with parts provisioning, engineering support and line maintenance.

“EGYPTAIR Maintenance & Engineering brings strong technical expertise with locations across the Middle East and Africa that enable us to better serve our customers in the region,” said Ted Colbert, president and CEO of Boeing Global Services. “Our customers rely on us to keep their airplanes in revenue service. With our global supplier network, which now includes EGME, we help make sure that our customers and their passengers fly Boeing airplanes with confidence every single day.”

“It’s another milestone in EGME’s strategy of growth in the global market as a leading MRO in Africa and the Middle East region,” said Mostafa Ali El-Din, chairman and CEO of EGME. “We are pleased to be part of Boeing’s global network, which reflects a great trust in our capabilities and personnel experience. EGME will utilize its wide-scope capabilities to provide the best technical services to customers who aspire for well-maintained fleet in service.”

In Boeing’s Services Market Outlook, the company forecasts rapid growth in the Middle East region’s commercial and government aviation services market, doubling the growth rate in North America.

Italian Government Asks Delta To Do The Right Thing

September 28, 2019 / WIL BALDWIN

The Italian government is begging U.S. major Delta Air Lines, Inc. (NYSE: DAL) to up the proposed acquisition of a 10% stake in Alitalia for $100 million to at least 15%, according to a report in Italian media.

Loss-making Alitalia has been seeking new investors for more than two years after going into administration in May 2017 after workers rejected a plan to cut jobs and salaries. Successive Italian governments have had to balance the carrier’s massive losses with the need to placate a heavily unionized workforce.

Click the link for the full story! https://finance.yahoo.com/news/italian-government-asks-delta-thing-205301072.html

Apollo and Athene to Acquire PK AirFinance From GECAS

August 29, 2019 / WIL BALDWIN

NEW YORK, Aug. 29, 2019 (GLOBE NEWSWIRE) — Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) (APO); Athene Holding Ltd. (ATH); and GE Capital, the financial services arm of GE (GE), today announced that they have entered into a definitive agreement for Apollo and Athene to purchase PK AirFinance, an aviation lending business, from GE Capital’s Aviation Services (GECAS) unit. In connection with this transaction, Apollo will acquire the PK AirFinance aircraft lending platform and Athene will acquire PK AirFinance’s existing portfolio of loans.

PK AirFinance is a leading aircraft lending business that serves airlines, aircraft traders, lessors, investors and financial institutions globally with loans to borrowers in more than 40 countries. Financial details of the transaction were not disclosed, although the $3.6 billion of PK AirFinance financing receivables that were held for sale in the second quarter of 2019 are being sold at a premium to book value in this transaction.

Alec Burger, GE Capital President & CEO, said, “Apollo’s vast lending experience, complementary platforms, and exceptional track record across diversified assets and geographies make it the ideal partner to accelerate PK AirFinance’s growth. This sale is aligned to GE Capital’s overall strategy to become smaller and simpler, and our commitment to reduce our assets by $10 billion in 2019 is now more than halfway complete. We continue to focus on shrinking GE Capital’s balance sheet, achieving a debt-to-equity ratio of less than 4x by 2020, and supporting GE Industrial growth through our remaining GECAS, Energy Financial Services, and Industrial Finance businesses.”

Jim Belardi, CEO of Athene, said, “This transaction provides us with a unique opportunity to acquire a large, diversified portfolio of high-quality loans with attractive risk-adjusted returns. In addition, this deal is another great example of the unique benefits of our strategic relationship with Apollo and its commitment to building direct origination platforms in support of the continued growth of our business.”

James Zelter, Co-President of Apollo, said, “We are very excited to be acquiring the PK AirFinance platform which, under GE’s outstanding stewardship, has become one of the world’s leading aircraft lending businesses, and is highly complementary to our existing aircraft leasing capabilities. This transaction also demonstrates our ongoing commitment to meet the investment needs of Athene and our clients, and is consistent with our objective to continue to expand Apollo’s capabilities to directly originate high quality assets.”

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.

Per Waldelof, president of PK AirFinance, said, “We have a great team of experts with tremendous execution capabilities and a proven ability to deliver results. We are confident that this transaction will ensure the continued stability of our business. We are excited for the opportunity to continue to serve our customers and the industry as part of the team at Apollo.”

The completion of the acquisition is subject to customary conditions and is expected to close during the fourth quarter of 2019. 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 advisor to Apollo.

China Southern Airlines to receive $4 billion capital injection

July 20, 2019 / WIL BALDWIN

SHANGHAI (Reuters) – China Southern Airlines will carry out an equity diversification plan that will involve the injection of 30 billion yuan ($4.36 billion) of capital from three investors, the firm announced on Saturday.

The Guangdong Hengjian Investment Holding Corporation, the Guangzhou Urban Construction Investment Group and the Shenzhen Penghang Equity Investment Fund will each inject 10 billion yuan into the airline, as part of the country’s efforts to diversify ownership structures among state-owned firms.

The move will significantly improve the company’s debt-to-asset ratio, generate funds for its growth and help modernize its decision-making mechanisms, the announcement said.

It will also use the funds to serve its main air transportation business, pay for construction related to China’s Belt and Road Initiative and support aviation development in cities in the southern province of Guangdong.

China Southern is one of 96 enterprises owned and administered directly by the central government. Its profits slumped nearly 50% last year as a result of rising fuel costs and a weak yuan currency.

(Reporting by David Stanway; Editing by Himani Sarkar)

Air Lease Announces Q2 2019 Earnings Conference Call

July 1, 2019 / WIL BALDWIN

LOS ANGELES, July 1, 2019 – Air Lease Corporation (NYSE: AL) will host a conference call on August 8, 2019 at 4:30 PM Eastern Time to discuss the Company’s financial results for the second quarter of 2019.

Investors can participate in the conference call by dialing (855) 308-8321 domestic or (330) 863-3465 international. The passcode for the call is 4472126.

The conference call will also be broadcast live through a link on the Investors page of the Air Lease Corporation website at www.airleasecorp.com. Please visit the website at least 15 minutes prior to the call to register, download and install any necessary audio software. A replay of the broadcast will be available on the Investors page of the Air Lease Corporation website.

For your convenience, the conference call can be replayed in its entirety beginning at 7:30 PM ET on August 8, 2019 until 7:30 PM ET on August 15, 2019. If you wish to listen to the replay of this conference call, please dial (855) 859-2056 domestic or (404) 537-3406 international and enter passcode 4472126.

About Air Lease Corporation

ALC is a leading aircraft leasing company based in Los Angeles, California that has airline customers throughout the world. ALC and its team of dedicated and experienced professionals are principally engaged in purchasing commercial aircraft and leasing them to its airline customers worldwide through customized aircraft leasing and financing solutions. For more information, visit ALC’s website at www.airleasecorp.com.

Air Antilles to be First Caribbean Operator of Viking Twin Otters

June 18, 2019 / WIL BALDWIN

Paris, France, June 18th, 2019: Viking Air Limited of Victoria, British Columbia, Canada, and Air Antilles, of Guadeloupe, French West Indies, have signed an agreement for the purchase of two Viking Twin Otter Series 400 aircraft, making Air Antilles the first commercial operator of the Series 400 in the Caribbean. Also forming part of the purchase agreement, Air Antilles will become the first Series 400 Twin Otter operator to receive European Union Aviation Safety Agency (EASA) certification for steep approach operations.

The two Viking-built Series 400 Twin Otters are scheduled for delivery to Air Antilles in the last quarter of 2019 and will be configured as 19-passenger regional commuter landplanes to replace the two legacy de Havilland Series 300 aircraft currently in commercial service with the airline.

With delivery of the Series 400 aircraft, Air Antilles will become the first commercial operator to receive EASA certification for steep approach landings, providing the airline with procedures to operate at approach angles in excess of 4.5 degrees. This is essential for Air Antilles’ scheduled operations to Gustaf III airport in Saint Barthelemy in order to satisfy EASA’s requirements for all commercial aircraft that access the airport to have factory certification for steep approach landings due to the surrounding mountainous terrain.

Eric Kourry, chairman of Guyane Aero Invest, the holding company of Air Antilles, commented, “As an operator of legacy de Havilland Series 300 aircraft for more than a decade, our knowledge of the Twin Otter’s exceptional flight capabilities, ease of maintenance, high dispatch reliability and suitability for our operations made selection of the Viking Series 400 a natural choice for upgrading our fleet.

“As travel tourism in the Caribbean expands, improvements to safety are becoming increasingly important for airlines to retain a competitive advantage. The innumerous improvements made to the new Series 400 will help Air Antilles increase safety and bring added value to their flight operations,” said David Caporali, Viking regional sales director for the Americas. He added, “The Caribbean shows encouraging market opportunities for Series 400 Twin Otter due to its low operating costs, ability to access the many short runways throughout the region, and its ability to support growth of an inter-island commercial transportation network. We highly value Air Antilles’ initiative to be the launch customer for the Series 400 in the region and are confident this relationship will yield many good results for both parties.”

About Air Antilles:

Compagnie Aerienne Inter Regionale Express (CAIRE), created in 2002, is an airline that operates under the name Air Guyane in the French Guiana, and under the name Air Antilles in the Caribbean. Air Antilles is one of the main regional airline companies in the Caribbean with more than 20 destinations in the area. The Twin Otter aircraft essentially serve from Guadeloupe to Saint Barthelemy, with Dominica soon to be added.

*Pictured above: Proposed paint scheme for Air Antilles’ new Series 400 Twin Otters scheduled for delivery at the end of 2019.*

BRX Holdings to buy Pioneer Railcorp for $18.81 Per Share

May 17, 2019 / WIL BALDWIN

PEORIA, Ill., May 17, 2019 /PRNewswire/ — Pioneer Railcorp (OTC: PRRR, “Pioneer”), a railroad holding company that owns short-line railroads and several other railroad-related businesses including a railroad equipment company and a contract switching services company, and BRX Transportation Holdings, LLC (“BRX”), an entity formed by Brookhaven Rail Partners (“Brookhaven”) and Related Infrastructure (“Related”), announced entry into a definitive merger agreement under which BRX will acquire Pioneer for $18.81 per share in cash. The agreement, which has been unanimously approved by Pioneer’s independent directors, represents a premium of approximately 100.7% over Pioneer’s closing stock price on May 16, 2019, the last trading day prior to the announcement of the transaction.

“We look forward to this next chapter in Pioneer’s journey and anticipate it will have a bright future under new ownership,” said Mike Carr, President and Chief Executive Officer of Pioneer.

“We are excited to partner with Related Infrastructure and to have worked with Pioneer’s management and board on a transaction that brings great value to its shareholders, its customers, and the communities it serves. Pioneer fits perfectly with Brookhaven’s philosophy of identifying opportunities where our hands-on management expertise, proprietary value creation strategies, and deep industry relationships provide us with a competitive advantage and the ability to create value,” said Alex Yeros, Principal of Brookhaven.

Related Infrastructure, a subsidiary of Related Fund Management which has raised over $5 billion of capital across a variety of different investment vehicles and strategies, invests in companies that develop, operate and service transportation infrastructure throughout the United States. Andrew Right, Managing Partner of Related Infrastructure said, “We are pleased to partner with Brookhaven to build a rail-based infrastructure platform. We appreciate the work Mike Carr and his team have done to create the Pioneer portfolio of rail businesses. We look forward to working with Alex and the entire team at Brookhaven, an industry leading team with over 25 years of experience building businesses in the short-line rail industry to further drive expansion of the platform.”

Under the terms of the merger agreement, BRX will acquire through merger all of the outstanding shares of Pioneer’s Class A common stock. Shareholders other than Pioneer’s subsidiary, Heartland Rail Investments LLC, will receive $18.81 per share in cash and the Heartland shares will be canceled without consideration.

In connection with the execution of the merger agreement, certain stockholders of Pioneer, together holding a significant portion of the outstanding shares of common stock of Pioneer, have agreed to vote their shares in favor of the transaction under a voting and support agreement.

The consummation of the merger is subject to various closing conditions, including approval by Pioneer’s shareholders, Surface Transportation Board approval, and operating performance by Pioneer within a specified working capital floor and debt ceiling. The merger is not subject to a financing condition. Subject to satisfaction of the closing conditions, the transaction is expected to close in the third quarter of 2019.

Arnold & Porter is acting as legal advisor to BRX in this transaction. BMO Capital Markets is serving as exclusive financial advisor to Pioneer in connection with this transaction and Briggs and Morgan, P.A. is acting as Pioneer’s legal advisor.

About Pioneer
Pioneer Railcorp is the parent company of 17 short-line common carrier railroad operations, an equipment leasing company, two service companies and a contract services switching company. Pioneer and its subsidiaries operate in the following states: Alabama, Arkansas, Georgia, Illinois, Indiana, Iowa, Kansas, Michigan, Mississippi, Ohio, Pennsylvania and Tennessee. For more information on Pioneer, please visit: http://www.Pioneer-Railcorp.com

About Brookhaven
Brookhaven Rail Partners is an affiliate of Denver-based Brookhaven Capital Partners, a privately held, real estate and infrastructure investment and management firm. Brookhaven and its principals have a 25-year track record of investing in, operating and developing critical transportation assets that support industry, and promote new economic development, community investment, and job creation. For more information on Brookhaven, please visit: http://www.BrookhavenPartners.com

German Wind Turbine Maker Senvion Files for Insolvency

April 9, 2019 / WIL BALDWIN

FRANKFURT, April 9 (Reuters) – A German court on Tuesday approved an application for insolvency from wind turbine manufacturer Senvion, although the company said it was also continuing to look at new funding options and various potential investors had shown interest.

The Hamburg-based company, which has more than a billion euros of debt, said it had applied for preliminary self-administration proceedings because refinancing discussions with lenders had not yet been successful.

Shares in Senvion were down 40.5 percent at 1519 GMT, having fallen as much as 55 percent earlier in the day.

Senvion has faced delays and penalties related to big projects, while the wind industry as a whole has seen falling prices and increased competition as it moves away from governments guaranteeing generous fixed subsidised tariffs for power towards an auction-based system that favours the lowest bidders.

Market leaders Siemens Gamesa and Vestas have more pricing power, putting smaller suppliers under pressure.

Financial sources had told Reuters Senvion needed at least 100 million euros ($112 million) in the short term to keep operating.

“Lenders and major bond holders are currently continuing intensive discussions around a financing offer to secure the continuation of operations which may allow the company to successfully exit this process,” Senvion said in a statement.

Two financial sources said hedge funds Anchorage and Davidson Kempner were prepared to put up the 100 million euros in loans that CEO Yves Rannou – who took the helm in January – needs to continue restructuring and clear the backlog of orders that has recently cost the company revenues and profit.

The sources said majority shareholder Centerbridge was prepared to accept that but the banks – notably Deutsche Bank and BayernLB – would still need to agree. The banks have lent Senvion a total of 950 million euros.

BayernLB and Deutsche Bank declined to comment.

Senvion also has 400 million euros in bonds bought by hedge funds including Anchorage and Davidson Kempner.

Senvion said its management board would remain in office under the initiated procedure and business operations would carry on, with both existing service and maintenance contracts continuing.

The company said the preliminary self-administration proceedings affected Senvion GmbH and a subsidiary called Senvion Deutschland GmbH. It said Senvion S.A., Senvion Topco GmbH and Senvion Holding GmbH were expected to file for insolvency later this week.

Senvion’s website says it has around 4,000 employees globally.

(By Alexander Hübner and Michelle Martin, Additional reporting by Hans Seidenstuecker; Editing by Tom Sims and Mark Potter)

Icelandic Coast Guard Upgrades to Airbus Rescue Helicopters

April 4, 2019 / WIL BALDWIN

Reykjavik, Airbus Helicopters is supporting the Icelandic Coast Guard (ICG) with the entry into service of two Airbus H225 heavy search and rescue (SAR) helicopters as the first step in a renewal of the agency’s helicopter fleet.

The aircraft are replacing two of the ICG’s three existing Airbus AS332L1 Super Pumas, the first of which entered service in 1995. They are being leased from Norwegian helicopter lessor Knut Axel Ugland Holding AS and will both be in service by the end of April 2019. The ICG plans to purchase permanent replacements for all three aircraft in its fleet by 2022.

Airbus Helicopters is providing pilot and technician training on key features of the H225 and ongoing maintenance and support under an HCare Smart Parts By the Hour contract.

The 11-tonne category, twin-engine H225 is the latest member of Airbus Helicopters’ Super Puma family with more powerful engines providing a smoother ride and enhanced performance compared to the AS332L1.

Equipped with state-of-the-art electronic instruments and a 4-axis autopilot system, the H225 offers outstanding endurance and fast cruise speed, and can be fitted with a wide range of SAR equipment. Operated by two pilots, it can be configured with up to 18 seats or six stretchers.

The H225 and military H225M are benchmarks in SAR and combat SAR and are operated by 20 nations worldwide.

Commander S.G. Sindri Steingrimsson, Director Flight Operations at the ICG said: “The experience with our current fleet of Super Pumas has been excellent through the years. Overall they have done a fantastic job for us here at the Icelandic Coast Guard, in some of the most challenging conditions for aircraft SAR operations in the world. We fully expect that the new Super Pumas will add great value to the safety and security of our operations, increasing capability and reliability while at the same time modernising our technological standards to meet current needs.”

The attached photo shows one of the new leased aircraft.

About Airbus
Airbus is a global leader in aeronautics, space and related services. In 2018 it generated revenues of € 64 billion and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger airliners. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world’s leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide.

Tesla To Buy Battery Tech Maker Maxwell Technologies

February 4, 2019 / WIL BALDWIN

(Reuters) – Tesla Inc has agreed to buy energy storage company Maxwell Technologies Inc for $218 million in an all-stock deal that could help the electric car maker produce batteries that hold more energy and last longer at a time when it needs to cut costs and faces growing competition.

Tesla is rapidly increasing production of its Model 3 sedan and needs to lower the price to reach a broader customer base than its pure luxury vehicles.

Maxwell executives told investors in January that it had developed and patented a “dry electrode” technology that could significantly increase the driving range and reduce the cost of electric vehicle batteries. In a presentation, Maxwell said it expected strategic alliances “within six months” centered around this technology.

The company also makes ultracapacitors, which discharge energy faster than batteries and are seen as complementing battery technology.

Ultracapacitors, combined with the energy of batteries, can enable rapid response times, function across a broader temperature range and lengthen battery life by up to two times, according to a blog post on Maxwell’s website.

Volvo-owner Geely Holding Group last May announced a deal with Maxwell and described the company’s ultracapacitor technology as helping to deliver “peak power” for hybrid cars.

“Tesla needs Maxwell’s solvent-free battery electrode manufacturing for a viable path to lower battery costs,” said Craig Irwin of Roth Capital Partners. “Real competitors are coming now, so Tesla needs to move fast.”

Maxwell’s customers also include General Motors and Lamborghini.

The offer values each Maxwell share at $4.75, representing a 55 percent premium to the stock’s closing price on Friday, the companies said. Maxwell shares rose to trade at $4.58.

Currently, Japan’s Panasonic Corp is the exclusive battery cell supplier for Tesla cars.

Tesla chief Elon Musk had highlighted the importance of ultracapacitors back in 2013.

“I’m a big fan of ultracapacitors. Was going to do my PhD at Stanford on them. But we need a breakthrough in energy density…,” Musk had tweeted https://twitter.com/elonmusk/status/336598500156518400?lang=en.

Tesla also sells power storage, often in conjunction with its solar power business, and ultracapacitors could be used in backup systems for homes and for utility power grids.

Maxwell expects the deal, which has already been approved by its board, to close in the second quarter of 2019, or shortly thereafter.

DLA Piper was Maxwell’s outside legal counsel, while Barclays Capital was the independent adviser. Wilson Sonsini Goodrich & Rosati represented Tesla as outside legal counsel.

(Reporting by Supantha Mukherjee, Peter Henderson and Akanksha Rana in Bengaluru and by Joe White and Paul Lienert in Detroit; Editing by Sriraj Kalluvila and Saumyadeb Chakrabarty)

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