Tag: capital (Page 8 of 12)

Fiat Chrysler, Peugeot Owner PSA Once Again in Talks to Combine

October 29, 2019 / WIL BALDWIN

(Reuters) – Fiat Chrysler and Peugeot owner PSA are in talks to combine in a deal that could create a $50 billion (£38.88 billion) automaker, a source familiar with the matter said on Tuesday.

Fiat Chrysler shares rose sharply after news of the talks and ended up more than 7.5% in U.S. trading. The companies and the French government had no comment.

The Wall Street Journal first reported the discussions. PSA’s supervisory board was due to meet on Wednesday to discuss the potential merger, another source close to the matter said.

If a combination of Peugeot and Fiat Chrysler succeeded in overcoming political, financial and governance hurdles, the new enterprise would still face substantial challenges. Global automakers face the prospect of a slowdown in global demand coinciding with the most dramatic technology changes in a century.

Peugeot Chief Executive Carlos Tavares has predicted “ten years of chaos” for global automakers as regulators demand a switch to electric vehicles to reduce emissions linked to climate change.

Investors have speculated for several years that Fiat Chrysler was hunting for a merger partner, encouraged by the rhetoric of the company’s late chief executive, Sergio Marchionne.

In 2015, Marchionne outlined the case for consolidation of the auto industry and tried unsuccessfully to interest General Motors Co in a deal. Fiat Chrysler earlier this year broached a merger with French automaker Renault SA that ultimately collapsed.

Created when Fiat, under Marchionne’s leadership, bought control of Chrysler out of a U.S. government-backed bankruptcy in 2009, Fiat Chrysler has one of the global auto industry’s most profitable franchises in the Jeep sport utility vehicle brand and a money-spinning North American pickup and commercial van operation in Ram. Both would boost Peugeot, which does not sell vehicles in the U.S. market.

Peugeot and Fiat Chrysler could over time share engines and vehicle architectures, reducing capital spending and freeing up cash to invest in electric vehicles and emissions reduction technology required in Europe, China and other global markets.

Fiat Chrysler is under increasing pressure to invest in clean car technology. The company disclosed earlier this month that it faces a $79 million fine for falling short of U.S. fuel efficiency standards. Fiat Chrysler agreed to pay U.S. electric car maker Tesla Inc for credits to help it comply with European emissions standards until 2022.

Evercore analyst Arndt Ellinghorst in a note on Tuesday said a combination of Fiat Chrysler and Peugeot “should ignite more rational industry behavior around allocation of capital and this particular merger makes materially more sense than a potential FCA-Renault merger.”

Peugeot and Fiat Chrysler had discussed a combination earlier this year, before Fiat Chrysler proposed a $35 billion merger with Renault. At that time, Fiat Chrysler said a deal with Renault offered more advantages than a combination with Peugeot.

Fiat Chrysler Chairman John Elkann broke off talks with Renault in June after French government officials intervened and pushed for Renault first to resolve tensions with its Japanese alliance partner, Nissan Motor Co.

Following the collapse of the Renault merger plan, Fiat Chrysler CEO Mike Manley left the door open for talks with would-be partners. But he said the Italian-American automaker could go it alone despite mounting costs to develop electric vehicles and comply with tougher emissions rules in Europe, the United States and China.

Along with Jeep and Ram would come Fiat’s Italian operations, which have struggled in recent years. Fiat’s Mirafiori assembly complex in its home city of Turin has run below 50% capacity, with thousands of workers on temporary layoffs.

Overall, Fiat has 58,000 workers in Italy, where the government has long resisted mass lay-offs by large employers.

Peugeot’s Tavares dismissed the idea of a combination with Fiat Chrysler during a discussion with reporters at the Frankfurt auto show last month. “We don’t need it,” he said when asked whether he was still interested in a deal with Fiat Chrysler.

Tavares has moved aggressively to expand Peugeot, acquiring German auto brand Opel from General Motors Co for $2.6 billion in 2017. Since then, he has overseen a turnaround at Opel.

Fiat Chrysler already has a commercial vehicle partnership with Peugeot.

(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Maju Samuel, Richard Chang and Dan Grebler)

Hilton Introduces Trio of New Hotel Brands to Spain’s Capital

October 27, 2019 / WIL BALDWIN

The trio includes:

Canopy by Hilton Madrid Castellana, first for Spain;
El Metropol Madrid, Curio Collection by Hilton, first for Madrid;
Atocha Hotel Madrid, Tapestry Collection by Hilton, first for Spain and first outside Americas

MADRID and MCLEAN, Va. – Hilton (NYSE: HLT) today announced the signing of three hotel franchise agreements with strategic investor partners, bringing three new brands to Madrid, of which two mark brand entries to the country. The addition of Canopy by Hilton Madrid Castellana; El Metropol Madrid, Curio Collection by Hilton; and Atocha Hotel Madrid, Tapestry Collection by Hilton represents a significant milestone for the global hospitality company, illustrating Hilton’s continued investment in Madrid as a premier tourist destination and its ambitions to further expand across Spain.

Patrick Fitzgibbon, senior vice president, development, EMEA, Hilton, said: “Spain has seen a surge in popularity, and Madrid is a particularly strong tourist market that has so much to offer. In 2018 the city welcomed a record-breaking 10 million visitors, making Madrid one of Europe’s most dynamic destinations for both business and leisure travellers. Responding to the increasing demand for great hotels combined with opportunities from world-class infrastructure investment and regeneration programmes, Hilton has expanded its portfolio to bring some of our most popular brands to Spain. Our new Madrid hotels will offer fantastic guest experiences and enrich communities.”

Canopy by Hilton Madrid Castellana

In partnership with Hotel Investment Partners (HIP), Hilton introduces its upper-upscale lifestyle brand, Canopy by Hilton, to Spain. HIP, Blackstone’s hotel investment platform, own the property and intend to invest €34 million in the hotel’s transformation, which will offer 311 guest rooms and multiple dining outlets, including a terrace restaurant overlooking Carlos Trias Bertran Square and a signature lobby café, Canopy Central. Expected to open in 2021, Canopy by Hilton Madrid Castellana is a perfect venue for guests looking to explore the capital. Situated close to the Paseo de la Castellana, one of the longest and widest avenues of Madrid, the hotel is near vibrant neighbourhood bars and restaurants, commercial buildings and international company headquarters, as well as Madrid’s world-famous Santiago Bernabéu Stadium, home of Real Madrid Football Club.

El Metropol Madrid, Curio Collection by Hilton

Joining a global portfolio of more than 70 one-of-a-kind hotels and resorts and located at the corner of Calle de la Montera and Gran Via, El Metropol Madrid, Curio Collection by Hilton is in the heart of Madrid’s historical town centre and close to the lively Puerta del Sol neighbourhood. With many rooms facing Gran Via, one of the city’s bustling streets with theatres, cinemas, shopping, restaurants and bars, guests can enjoy a stunning view of Madrid city life. Guests at the 93-room upper-upscale hotel will enjoy a range of facilities and amenities, including a rooftop bar with unbeatable city views. Its central location means many tourist attractions are within walking distance with easy access to Madrid’s metro network and connections to its business district. In partnership with owning company Montera 47, El Metropol Madrid is slated to make its debut in January 2021, joining existing Curio Collection hotels in Barcelona, Alicante, Malaga and Ibiza.

Atocha Hotel Madrid, Tapestry Collection by Hilton

Atocha Hotel Madrid, Tapestry Collection by Hilton joins a portfolio of hotels that offer guests unique style and an authentic connection to their destination. Brought to market by hotel operator Panoram Hotel Management, the 46-room hotel on Calle Atocha is just metres from Madrid Atocha railway station, the busiest in Spain, and is within walking distance of popular tourist attractions, including the Museo Reina Sofia, Prado Museum and the El Reitro Park. The first Tapestry Collection hotel to open in Spain and the brand’s first outside the Americas, Atocha Hotel Madrid will introduce the Tapestry Collection experience to Madrid locals and visitors alike. Amongst the amenities available, guests can select to stay in one of four Five Feet to Fitness rooms, a revolutionary in-room wellness concept created by Hilton allowing guests to work out in their guest room, with more than 11 pieces of fitness equipment and accessory options to choose from. The hotel is anticipated to open in the first quarter of 2020.

Hilton opened its first hotel in Madrid in 1953 and has since continued its commitment to investing in the city and supporting its growth as a leading tourist destination. Other Madrid properties include Hilton Madrid Airport (284 rooms), DoubleTree by Hilton Madrid Prado (61 rooms) and the 138-room Hampton by Hilton Madrid Alcobendas, located on Avenida de Fernando Alonso, which is set to open in January 2020.

Expansion on the Iberian Peninsula is a strategic focus for Hilton, and the company is growing faster in the region than ever before. It has signed a new Franchise or Management Agreement for a hotel in Spain every two months for the past two years, which represents more than 1,800 new keys. Hilton’s current Spanish portfolio of 12 hotels and resorts offers more than 2,000 hotel guest rooms and suites.

Milestone in Alstom’s First System Contract in Vietnam

October 26, 2019 / WIL BALDWIN

Alstom on track to complete first train for Hanoi Metro Line 3

26 October 2019 – Alstom, which is manufacturing 10 trains for Hanoi Metro Line 3, today hosted Deputy General Secretary of the Communist Party of Vietnam, Tran Quoc Vuong, and his delegation to a visit of its train assembly plant in Valenciennes (France). The plant is working to complete the first trainset by the end of October, marking an important milestone in Alstom’s first integrated metro system contract in Vietnam, signed with MRB (Hanoi Metropolitan Railway Management Board) in 2017.

As part of the visit, Alstom’s Managing Director for China and East Asia, Olivier Loison, and Chairman of the Hanoi People’s Committee and Mayor of Hanoi, Nguyen Duc Chung, signed a memorandum of understanding regarding the existing contract of Alstom in Hanoi. The agreement aims to foster further collaborative opportunities between both parties for new systems within the Vietnamese capital.

“We are honoured to have Deputy General Secretary Vuong and his team witness the final assembly of our first train for Hanoi Metro Line 3 here in Valenciennes. This will be an important milestone for the bilateral project as we bring this train to fruition. We look forward to remaining a close and long-term partner of Vietnam, addressing its mobility needs and supporting it in its upcoming transport projects,” said Olivier Loison.

In 2017, Alstom, as leader of a consortium including Colas Rail and Thales, was awarded a contract to supply an integrated metro system for Hanoi Metro Line 3. Alstom’s share covered the supply and integration of the metro system, including the 10 trains and the Urbalis 400 signalling system[1], as well as the delivery of power supply and depot equipment together with a partner. The new line is 12.5 kilometres long with 12 stations. It is expected to carry over 23,900 passengers per hour and per direction at peak capacity.

Alstom puts the passenger at the heart of its train design process. The four-car Metropolis trains for Hanoi Metro Line 3 will feature wide doors to facilitate passenger flow, dedicated space for passengers with reduced mobility, as well as ergonomic and easy-to-grab bars. The trains will be fully electric, with lightweight aluminium car bodies. The train’s exterior and interior colour scheme takes local Vietnamese inspiration and includes motifs such as dragon fruit and the rice paddy field – a design that was well-received by the people at a public consultation held in September 2018.

When completed, the first train will undergo a series of static and dynamic tests at the Valenciennes Railway Testing Centre during the month of November. Tests will be carried out on the trains’ automatic control system and on-board audio-visual equipment, this time on Hanoi Metro Line 3 in the second half of 2020. Entry into service is expected in the first half of 2021.

Alstom has built up close to 30 years of presence in Vietnam. It has provided signalling and telecommunication system modernisation services for the Hanoi-Vinh regional line phase one and phase two and has offered signalling and telecommunication systems for Ninh Binh station.

[1] Alstom’s Communication Based Train Control (CBTC)-solution, which controls the movement of the trains and enables trains to run at higher frequencies and speeds in total safety

ATR Launches Short Take-Off and Landing 42-600’S

October 11, 2019 / WIL BALDWIN

Leading turboprop manufacturer’s Board of Directors approves the launch of brand new STOL version

Juan-les-Pins, 9 October 2019 – ATR, the world number one regional aircraft manufacturer, confirms it has received authorisation from its board of directors for the launch of the ATR 42-600S. With the ‘S’ representing STOL (Short Take-Off and Landing), this new version of the ATR 42-600 offers take-off and landing capabilities on runways as short as 800m with 40 passengers on board in standard flight conditions (*). This makes the ATR 42-600S the best performing aircraft in this segment.

To-date, ATR has recorded 20 commitments from operators and lessors for this ATR 42-600S variant. This includes Elix Aviation Capital as the launch lessor and Air Tahiti as the launch operator, as announced on the occasion of the Paris Air Show 2019.

The 42-600S is a brand new addition to the company’s aircraft family, alongside the founding members ATR 42-600 and ATR 72-600, and the forthcoming ATR 72-600F cargo variant. The ATR 42-600S’ certification, is expected for the second half of 2022, with the first delivery expected immediately after.

ATR Chief Executive Officer Stefano Bortoli, commented: “Adding the ATR 42-600S to our family makes total sense and paves the way for the company’s future. There is a huge potential for 50-seater aircraft and the ATR 42-600S could help airlines widen their horizons, as it can reach up to around 500 new airports across the globe. This is clear illustration of our dedication in helping more people and more remote communities benefit from being part of a connected world and in a sustainable way.”

The principal modifications for the 42-600S will concern the introduction of a larger rudder, which allows increased control of the aircraft at lower speeds. The new version will continue to use the same engine as both the ATR 42 and 72. The ATR 42-600S will, however, allow pilots to be able to select between the ATR 42 and 72 engine ratings, meaning the aircraft can use increased power for performing STOL operations, or elect to operate more efficiently with less power on longer runways. The ATR 42-600S will also be able to symmetrically deploy its spoilers to improve braking efficiency on landing. It will also come with an autobrake system which will ensure that the full braking power occurs immediately upon landing.

With this new version, ATR forecasts to expand the addressable market by 25%, targeting new routes and the 30-seater STOL segment. There is a strong interest from airlines for a new 50-seater product capable of operating in more constraint conditions. Close to 500 airports have a runway comprised between 800-1,000m and could welcome the ATR 42-600S. The launch of this aircraft will benefit both passengers and airlines thanks to the increased regional connectivity that it will bring.

*15°C airfield temperature, sea level, dry paved runway and a route of 200NM.

Boeing Invests in Human Spaceflight Pioneer Virgin Galactic

October 8, 2019 / WIL BALDWIN

– Boeing and Virgin Galactic enter strategic partnership to transform commercial space travel and mobility

– Latest investment to date by Boeing HorizonX Ventures organization

Boeing [NYSE: BA] is investing $20 million in Virgin Galactic, a vertically integrated human spaceflight company. The companies will work together to broaden commercial space access and transform global travel technologies.

“Boeing’s strategic investment facilitates our effort to drive the commercialization of space and broaden consumer access to safe, efficient, and environmentally responsible new forms of transportation,” said Brian Schettler, senior managing director of Boeing HorizonX Ventures. “Our work with Virgin Galactic, and others, will help unlock the future of space travel and high-speed mobility.”

To date, Virgin Galactic has invested $1 billion of capital to build reusable human spaceflight systems designed to enable significantly more people to experience and utilize space. In July, the company announced its intent to become a publicly-listed entity via a business combination with Social Capital Hedosophia Holdings Corp. The Boeing investment will be in return for new shares in Virgin Galactic and is therefore contingent on the closing of that transaction, which is expected to close in the fourth quarter of 2019, and any such investment will be in the post-business combination company.

This investment brings together two companies with extensive experience in the space industry. Virgin Galactic is a pioneer of commercial human space flight and is the first and only company to have put humans into space in a vehicle built for commercial service, having built and flown a Mach 3 passenger vehicle. Through its manufacturing and development capabilities, Virgin Galactic can design, build, test, and operate a fleet of advanced aerospace vehicles. Boeing has unsurpassed experience transporting people to orbit and building and operating large structures in that challenging environment. A part of every U.S. manned space program, Boeing serves as NASA’s prime contractor for the International Space Station (ISS) and is preparing the new, reusable, Starliner space capsule for launch to the ISS.

“This is the beginning of an important collaboration for the future of air and space travel, which are the natural next steps for our human spaceflight program,” said Sir Richard Branson, founder of Virgin Galactic. “Virgin Galactic and Boeing share a vision of opening access to the world and space, to more people, in safe and environmentally responsible ways.”

Boeing Defense, Space & Security President and CEO Leanne Caret, said “the unique expertise of our companies stretches from points all around the world to the deepest reaches of space. Together we will change how people travel on Earth, and among the stars, for generations to come.”

George Whitesides, CEO of Virgin Galactic, noted: “we are excited to partner with Boeing to develop something that can truly change how people move around the planet and connect with one another. As a Virgin company, our focus will be on a safe and unparalleled customer experience, with environmental responsibility to the fore.”

Additional information on specific projects to be pursued will be shared in the future.

SWISS Adds Ljubljana to its Route Network

October 3, 2019 / WIL BALDWIN

From 16 October onwards, SWISS will be offering a new service to the Slovenian capital of Ljubljana, departing from its hub at Zurich Airport. There will be five connections a week initially, with a daily flight from 27 October.

Swiss International Air Lines (SWISS) is to extend its route network to include a new destination, Ljubljana, from 16 October onwards. There will be five flights weekly up to and including 26 October, which will initially be operated by Helvetic Airways. With the rollout of the winter schedule on 27 October SWISS will fly to the new destination once a day from Zurich on an alternate basis with its wet lease partner, Helvetic Airways.

Prior to discontinuation of flight operations by Adria Airways, SWISS passengers were able to travel to from Zurich to Ljubljana thanks to a codeshare agreement. The new flights will ensure a continuing connection. As a result, passengers from all over the world will still enjoy smooth travel to the Slovenian capital via the SWISS hub at Zurich Airport. Passengers from Ljubljana will have access to the Swiss flag carrier’s worldwide network.

The timetable is available at swiss.com, flights may be booked now.

Wizz Air To Increase Seat Capacity at Budapest Base

September 12, 2019 / WIL BALDWIN

NEW STATE-OF-THE-ART AIRCRAFT AND 3 NEW ROUTES LAND IN BUDAPEST

WizzAir,the largest airline in Central and Eastern Europe and Europe’s greenest* airline has today announced the arrival another state-of-the-art Airbus A321neo aircraft at its base in Budapest in June 2020 and the launch of three new routes to European cities from the Hungarian capital. Tickets for the new routes are already on sale and can be booked from only HUF 6,490, and 7,990**, respectively, on wizzair.com and the airline’s mobile app.

New daily service to Brussels, four destinations in Ukraine

Brussels Charleroi has been a part of Wizz Air’s network since 2004. From next summer, the airline will also operate a daily service to Brussels Airport, the Belgian’s capital main airport – the airline’s 151 destination –, creating a more direct link with the centre of the European Union for business travellers and diplomats. With its picturesque main square and delightful brasseries, Brussels is an attractive destination for tourists as well.

Hungary’s hometown airline is also expanding towards the East with two flights per week to Lviv, Western Ukraine’s central city, and Kharkiv, the second largest city in the country. As Kyiv has been accessible from Budapest since 2011 and flights to Odessa will launch this October, today’s announcement means that Budapest will be linked by direct flights to all four Wizz Air destinations within Ukraine.

Lviv is one of Ukraine’s most scenic historic towns, with its downtown featured in the UNESCO World Heritage List. The town was one of the multicultural centres of the Austro-Hungarian Monarchy under the name Lemberg and has preserved its Central European atmosphere to this day. Today, Lviv is one of the centres of Ukrainian culture with lots of theatres, museums and festivals awaiting visitors. Kharkiv is an interesting destination for admirers of Ukrainian gastronomy and Soviet-style architecture with its magnificent metro stations and the country’s first skyscraper.

16 aircraft in Hungary

With the arrival of the newest A321neo, Wizz Air’s Hungarian fleet expands to 14 aircraft allocated in Budapest, with a further 2 aircraft based in Debrecen. This means the airline’s operations support over 4,000*** indirect local jobs in the country. Apart from the new destinations, Wizz Air will increase its frequency on four of its existing routes to Eindhoven, St. Petersburg, Tel-Aviv and Edinburgh (to be launched this December). With this expansion of capacity, Wizz Air will increase its Hungarian seat capacity to 6.7 million passengers in 2020.

Wizz Air is the “greenest” airline

The new routes will be served by the state-of-the-art Airbus A321neo aircraft of the Budapest base. The airline operates one of the youngest fleets in Europe, with the average age of 4.7 years. As a result, Wizz Air was the airline with the smallest environmental footprint in Europeonce again in August 2019, with only 57.7 grams CO emissions per passenger per kilometre. The company currently has a total of 271 Airbus A321neo, Airbus A321neo and Airbus A321XLR aircraft on order. With the new aircraft, the airline will continue to drive efficiency parallel to further decreasing its environmental footprint by 1/3 for over the next decade. The Airbus A321neo, six of which are already in operation at WIZZ’s Budapest base, incorporates the latest technologies in aviation. It offers a 50 percent reduction in noise footprint, a 20 percent reduction in fuel consumption, while also reducing nitrogen oxide emissions by up to 50 percent.

Stephen Jones, Wizz Air Hungary’s managing director said: “Hungary’s hometown airline, Wizz Air remains strongly committed to its country of origin. We are continuously expanding and modernizing our fleet and network in Budapest to provide affordable and high quality travel opportunities to more and more Hungarian passengers. Adding a new, state-of-the-art aircraft to our Budapest fleet and launching three new routes underpins our dedication to Budapest and Hungary and creates more local jobs with the airline and in associated industries, as well as stimulates the local tourism and hospitality industries. The WIZZ team looks forward to welcoming customers old and new on-board our ultra-efficient fleet of Airbus aircraft very soon. And for those looking to turn their passion for travel into a career, we’d be delighted to see you at one of our Wizz Air cabin crew recruitment days, where you can find out more about joining the WIZZ team.”

Avianca Exchanges $475 mln in Bonds, Gets United Funding

September 12, 2019 / WIL BALDWIN

BOGOTA, Sept 12 (Reuters) – Latin American airline Avianca announced the exchange of $475.2 million in bonds on Thursday, part of a plan to change its capital structure amid ongoing financial problems and enough to receive additional financing from United Airlines.

In a statement to Colombia’s financial regulator, Avianca said it would extend the deadline for bond holders to exchange their paper until Sept. 25, in a bid to exchange a total of $550 million worth of bonds coming due next year.

Investors can exchange the bonds for others also coming due in 2020, but with a $50 bonus per $1,000.

United Airlines and Kingsland Holdings Limited, which between them control Avianca, said in a joint statement that results of the exchange thus far were sufficient for it to give the airline up to $250 million in additional financing.

“We are also pleased to confirm that this achievement is sufficient to satisfy United’s requirement for the exchange of these May 2020 bonds, regarding our previously announced offer, together with Kingsland, to loan $250 million to Avianca Holdings,” said John Gebo, senior vice president of alliances for United Airlines.

“Our loan remains contingent on certain other conditions being met by Avianca Holdings, including certain commitments and waivers made by other stakeholders,” Gebo said.

United launched a management overhaul at Avianca in May, removing top shareholder German Efromovich from controlling the cash-strapped airline.

(Reporting by Nelson Bocanegra Writing by Julia Symmes Cobb; Editing by Tom Brown)

Cathay Pacific Shares Fall Nearly 4% After Chairman Resigns

September 4, 2019 / WIL BALDWIN

Slosar attends a news conference in Hong Kong

HONG KONG (Reuters) – Shares in Cathay Pacific Airways Ltd fell nearly 4% in early trade on Thursday following the resignation of its chairman after the market closed on the previous day.

The departure of John Slosar was announced less than three weeks after mounting Chinese regulatory scrutiny led to the shock exit of its chief executive, Rupert Hogg.

Cathay shares had closed 7.2% higher on Wednesday as the Hong Kong market was lifted by reports of the withdrawal of a controversial extradition bill, which was officially announced after the market closed.

Long-serving Swire Pacific Ltd executive Patrick Healy was appointed as Cathay’s new chairman on Wednesday following the resignation of Slosar, who had served in the role since 2014.

“As John would have retired soon anyway it’s not really a huge setback as a business,” an analyst said of Slosar’s departure. “However it’s always awful to see when politics dictate like this.”

The analyst, who was not authorised to speak publicly about personnel changes, said he believed if the political situation in Hong Kong stabilised, the situation at Cathay should as well.

Daiwa Capital Markets analyst Kelvin Lau said the extradition bill’s withdrawal was positive for Cathay, even though protests were not expected to end immediately.

“We expect this to be a turning point where the situation would at least not worsen,” he said in a note to clients, adding that recent personnel changes at the airline should satisfy the requirements of the Chinese regulator and were likely to instill confidence among customers.

China’s aviation regulator last month said crew who engaged in the anti-government protests in Hong Kong posed a threat to safety and should be suspended from staffing flights to the mainland and over its airspace.

(Reporting by Donny Kwok and Jamie Freed, writing by Jamie Freed, editing by Richard Pullin)

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.

The trio includes:

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