GPA is set to re-emerge under a new name as a small independent lessor later this year following a deal with US venture capital partnership Texas Pacific to acquire up to a 47.7% shareholding in the Irish lessor.
The deal comes three months after a memorandum of understanding was agreed between GPA and GE Capital, the US leasing arm of General Electric, which rescued GPA from the brink of bankruptcy in 1993, allowing the leasing specialist to emerge from the shadow of the US concern.
Under the original $1.4 billion deal of 1993, GE Capital took a large slice of GPA's aircraft portfolio off its books in return for receiving an option to acquire the company at any time over the following seven years through to October 2001. As part of the new deal, GE Capital has agreed to reduce its share option to just 24.9%, with additional rights to buy into an aircraft securitisation package.
Texas Pacific, which numbers America West, Continental and Ryanair shareholder David Bonderman among its partners, will invest some $115 million in GPA in return for a 47.7% stake, which will be put up for shareholder approval at the annual general meeting on 4 November.
The deal, which is expected to close by 18 November, will see Shannon-based GPA renamed AerFi Group. The core of AerFi's business will be based around 80 aircraft, primarily Airbus A320s and Boeing 737s.
When GE Capital took control, management of GPA's leased fleet was also taken over by a newly created division, GE Capital Aviation Services (GECAS).
GPA continued to manage the liabilities of the remainder of its aircraft portfolio. It is to renegotiate the GECAS contract with early termination in 2001 for a fee of $61 million, as well as paying an additional $36 million to buy out finance leases on 18 aircraft. Finally, GE Capital will take over nine aircraft together with GPA's future delivery positions.
Source: Flight International
