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Tuesday, January 31, 2023

KKR (NYSE: KKR) Announces Acquisition of CIT Aviation Lending Portfolio

KKR & Co. Inc. (NYSE: KKR) disclosed that it has decided to acquire the aviation loan portfolio of CIT Group Inc. (NYSE: CIT). This acquisition is linked to an earlier disclosed final agreement for a portfolio that has a pledged loan balance of nearly $800 million across more than 50 loans for roughly 60 commercial aircraft.

Furthermore, the loans have an average yield in the mid-single digits and an average term remaining of about four years. It has been disclosed that the deal is being financed by distinct accounts administered by the KKR. Moreover, the portfolio will be served by AV AirFinance Limited (AV AirFinance).

In addition to this, certain members of CIT’s aviation team will also participate in the AV AirFinance where they will concentrate on checking and originating loans. The majority of loans have been moved with the remaining balance anticipated to be executed by the end of the second quarter of 2021. After the execution. CIT will have fully withdrawn its aircraft lending business and remains dedicated to offering banking and advisory services as part of its core Aerospace, Defense, and Government Services business.

“CIT President disclosed that the firm delighted to ink an agreement with a team that recognizes the aerospace lending business and will serve clients well. This deal will also enable CIT to strike a balance between its portfolio mix and reinvest in main businesses.

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