CIT Group Inc. (NYSE: CIT) has completed the sale of its commercial aircraft leasing business to Avolon Holdings Limited (Avolon), the international aircraft leasing company and wholly-owned subsidiary of Bohai Capital Holding Co. Ltd., for a purchase price of USD 10.4bn, the company said.
CIT will use the cash proceeds from the transaction to fund approximately USD 3bn in capital return to shareholders and redeem USD 5.8bn in senior unsecured debt. The liability management and capital return actions are expected to be initiated as soon as practicable and before the end of April.
With the completion of this transaction, as well as the recent sale of CIT´s stake in the TC-CIT aviation joint ventures, CIT has now exited the commercial aircraft leasing business.
J.P. Morgan Securities LLC served as exclusive financial advisor, and Wachtell, Lipton, Rosen & Katz served as legal counsel to CIT.
CIT is a financial holding company with USD 64bn in assets as of Dec. 31, 2016. Its principal bank subsidiary, CIT Bank, N.A., has more than USD 30bn of deposits and more than USD 40bn of assets. CIT provides financing, leasing, and advisory services principally to middle-market companies and small businesses across a wide variety of industries. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A.