Spirit out with a EETC; ALC prices two senior note offerings; GECAS sale remains unconfirmed

Eleanor Steed
By Eleanor Steed November 14, 2017 16:22

Spirit out with a EETC; ALC prices two senior note offerings; GECAS sale remains unconfirmed

GE unveiled a new roadmap for the restructuring of the conglomerate yesterday and cut its dividend to the dismay of shareholders but there was no explicit reference to the possible sale of its aircraft leasing arm. The company reiterated its commitment to GE engines but not its leasing business. The bottom line is that GECAS makes money, which is badly needed at GE to rebalance the rest of its business. A portfolio sale right now would be poor timing as the premium other books gained over the past few years is unlikely to be achieved in this market when all corners are predicting a downturn in the next two to three years. That said, it may be that GE remains quietly looking for a buyer without having to do so in the glare of the media spotlight. Time will tell on this point.

As the large-scale orders from past Dubai airshows fail to materialise this year since Emirates spurns another A380 order until further guarantees are gained from Airbus on continue production of the aircraft type, attention turns to the US capital markets where Spirit and Air Lease Corp. have entered the market with an Enhanced Equipment Trust Certificate (EETC) issuance and a senior notes offering, respectively (see Americas Finance News below).

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Eleanor Steed
By Eleanor Steed November 14, 2017 16:22