BAE Systems announces $187 million sale of regional aircraft leasing company

BAE Systems announces $187 million sale of regional aircraft leasing company

2011-05-27 05:51:57 GMT+7 (ICT)

FARNBOROUGH, UNITED KINGDOM (BNO NEWS) -- BAE Systems on Thursday announced the sale of its regional aircraft leasing company for $187 million to Fortress Investment Group LLC.

UK-based BAE Systems is Europe's largest multinational defense, security and aerospace company company and will be selling its Asset Management business, which is the world's second largest regional jet lessor by fleet value and the tenth largest aircraft lessor by fleet size.

The business has 16 lease customers in 11 countries and is responsible for the management of 151 commercial aircraft owned by BAE Systems, which are included within the sale. It also runs a third party owned commercial aircraft on behalf of airlines and investors.

Over the past 17 years to the end of 2010, the organization has concluded more than 1,800 lease, sale and other transactions, worth in excess of $3.1 billion. The business is predominantly based in the UK and employs approximately 70 people.

The sale is expected to close in the third quarter of the current year, but BAE Systems noted that support and engineering activities of its Regional Aircraft are not included in the sale.

In connection with the disposal of this business, BAE Systems also announced that it had entered into an agreement enabling the redemption of $514 million of the Series G Equipment Notes and Series B Equipment Notes issued under the Systems 2001 Asset Trust financing, a private placement of debt securities completed in 2001.

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