AerCap Inks $2.6 Billion Sale-and-Leaseback Agreement
Netherlands-based airplane lessor AerCap Holdings landed a big sale-and-leaseback contract with customer LATAM Airlines Group Wednesday.
Valued at $2.6 billion, the deal will have AerCap buy 25 wide-body aircraft, including nine new Airbus A350-900s, four new Boeing 787-9s, and two new Boeing 787-8s that LATAM has on order from Airbus and Boeing, respectively, plus an additional 10 "used" Airbus A330-200s already in LATAM's fleet. AerCap will then lease all 25 aircraft back to LATAM for its use, making its profit by collecting lease payments over a term of years.
In a statement, AerCap called the deal "landmark" and said it gives AerCap "an attractive opportunity to expand our widebody portfolio with the most in-demand, new technology aircraft and to place them on long-term leases to one of the world's leading airlines."
AerCap shares are up 3.5% in early Thursday trading, circling $17.37.
The article AerCap Inks $2.6 Billion Sale-and-Leaseback Agreement originally appeared on Fool.com.Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.