Apollo and Athene complete acquisition of parts of PK AirFinance

Apollo Global Management and Athene Holding have closed their acquisition of aviation lending business PK AirFinance from GECAS, GE Capital’s aviation services unit.

PK AirFinance, an aircraft lending business that serves airlines, aircraft traders, lessors, investors and financial institutions globally with loans to borrowers in more than 40 countries. Substantially all of the $3.6 billion of PK AirFinance financing receivables that were held for sale in Q2 2019 were sold in the transaction, at a premium to book value.

The transaction saw Apollo acquire the PK AirFinance aircraft lending platform, while Athene has acquired its existing portfolio of loans. The transfer of the remaining portion of the business is deferred pending certain regulatory and other conditions and is expected to be completed in the first half of 2020.

Financial details of the transaction were not disclosed, although today’s close represents a receipt by GE of more than 90 percent of agreed proceeds.