Holland & Knight Represents CIT Group in Sale of Aviation Loan Portfolio
NEW YORK (June 21, 2021) – Holland & Knight advised CIT Group Inc., a leading national bank, in the sale of its nearly $800 million aviation loan portfolio to global investment firm KKR. The deal was announced on June 11.
The transaction is part of KKR's launch of a new commercial aviation lending platform, AV AirFinance Limited, which will provide secured financing to airlines, lessors, manufacturers and investors. The sale includes more than 50 loans for about 60 commercial aircrafts. The loans, on average, yield in the mid-single digits and have about four years remaining before maturing. KKR's acquisition adds to its growing presence in the aviation space.
The majority of loans have been transferred with the remaining amount expected to be completed by the end of the second quarter of 2021. Upon its completion, CIT will have fully exited its aircraft lending business. CIT will remain committed to providing banking and advisory services as part of its core Aerospace, Defense and Government Services business.
The Holland & Knight team advising CIT was led by Corporate Partner Tammy Knight, Asset Finance Partner Brian Daigle and Corporate Associate Nicole Maron.
More information about the transaction can be found here.