Transaction to Increase Genesis Lease Portfolio to 53 Aircraft
Year-to-Date Acquisitions Exceed $380 Million, Resulting in an
Increase of More Than 30% in Base Rental Revenues
SHANNON, Ireland, Sept. 26, 2007 (PRIME NEWSWIRE) -- Genesis Lease Limited (NYSE:GLS) announced today that it has signed a definitive agreement to acquire a portfolio of eight (8) modern, narrow-body commercial aircraft from GE Commercial Aviation Services ("GECAS"). The transaction is expected to be substantially completed by the end of September 2007.
The portfolio consists of three Boeing B737-700, two Airbus A319 and three Airbus A320 aircraft. These aircraft are currently leased to six commercial airlines, including Air Berlin (2), Germanwings (2), LTU (1), MyTravel (1), Aloha Airlines (1) and United Airlines (1). The eight aircraft operate in Germany, the United Kingdom and the United States.
Upon the completion of this transaction, and including the delivery of the previously announced remaining two new Airbus A320 aircraft to Air Deccan and IndiGo in mid-September, Genesis will have increased its portfolio by 12 aircraft, representing year-to-date acquisitions of more than $380 million, resulting in an increase in contracted monthly base rentals of more than 30% compared to the start of the year. Based on a completion date of September 30, 2007, the enlarged Genesis portfolio will consist of 53 aircraft on lease to 34 airlines in 18 countries with a weighted average age of 5.8 years and a weighted average remaining lease term of 5.7 years.
Commenting on the transaction, Genesis Lease Limited's Chief Executive Officer, John McMahon, noted, "This acquisition is immediately accretive to the cash flows of the Company. By executing this transaction using our USD $1 billion credit facility, we have demonstrated our ability to complete acquisitions in all types of capital market conditions. The quality and type of aircraft we have added is in line with our vision to build and maintain one of the most modern, desirable commercial aircraft portfolios in the leasing industry.
"We are delighted to complete this latest transaction with GECAS, which builds upon existing servicing and business opportunities agreements between the companies and provides Genesis Lease with a significant competitive advantage."
Mr. McMahon concluded, "The worldwide customer demand for leased aircraft remains strong. All of our aircraft are on lease and all of our customers are meeting their lease payment obligations in a timely manner."
About Genesis Lease Limited
Genesis Lease Limited is a global commercial aircraft leasing company that is headquartered in Shannon, Ireland. Genesis acquires and leases modern, operationally efficient passenger and cargo jet aircraft to a diverse group of airlines throughout the world. Genesis leverages the worldwide platform of GE Commercial Aviation Services Limited, or GECAS, to service its portfolio of leases, allowing management to focus on executing its growth strategy.
Genesis' common shares, in the form of American Depositary Shares, are listed on the New York Stock Exchange under the symbol "GLS."
The Genesis Lease Limited logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3178
Caution Concerning Forward-Looking Statements
This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to our plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts as well as statements identified by words such as "expects," "anticipates," "intends," plans," "believes," "seeks," "estimates," or words of similar meaning. These statements are based on current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors.