Well, this is even better news………. one has to expect the entire $3.7B to be used for buybacks….
AIG Announces Pricing of the Sale of Ordinary Shares of AerCap Holdings N.V. NEW YORK–(BUSINESS WIRE)–Jun. 3, 2015– American International Group (NYSE:AIG) announced today that it has priced the sale of a total of 86,883,274 ordinary shares of Aercap Holdings NV (NYSE:AER) by means of an underwritten public offering of 71,184,686 ordinary shares and a private sale of 15,698,588 ordinary shares to AerCap. Closing of these transactions is scheduled for June 9, 2015 and is subject to customary closing conditions.
AIG will receive cash proceeds of approximately $3.7 billion, reflecting proceeds of approximately $3.4 billion from the underwritten offering and cash proceeds of $250 millionfrom the private sale of shares to AerCap. In connection with the closing of the private sale of shares to AerCap, AIG will also receive $500 million of 6.50% fixed-to-floating rate junior subordinated notes issued by AerCap Global Aviation Trust and guaranteed by AerCap Holdings N.V. and certain of its subsidiaries. These notes mature in 2045 and are callable beginning in 2025.
In connection with the underwritten public offering, AIG has granted the underwriters a 30-day option to purchase an additional 10,677,702 ordinary shares of AerCap from AIG. Should the underwriters exercise their option in full, AIG would receive additional proceeds of approximately $0.5 billion and would no longer own any AerCap ordinary shares. Under the terms of the underwriting agreement in connection with the underwritten public offering, AIG is restricted from selling any of its remaining ordinary shares of AerCap for 90 days, subject to certain exceptions.
“AIG has built a long track record of successfully and responsibly monetizing our non-core assets,” said Peter D. Hancock, President and Chief Executive Officer, AIG. “We will continue to optimize the value we deliver to our shareholders by both de-risking our non-core investments and enhancing AIG’s financial flexibility, as we did in deconsolidating more than$24 billion of debt in connection with the sale of International Lease Finance Corporation. In addition, we are pleased that, since the time of announcement of the sale of ILFC to AerCap, the value of the transaction has increased by more than $2.2 billion.”
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