To enhance the size as well as terms of its unsecured revolving
credit facility, International Lease Finance Corporation (ILFC) - a
part of the aircraft leasing wing of
American International Group, Inc.
) - has replaced its old credit facility with a new $2.3 billion
committed unsecured revolving credit facility. The credit facility
will be used to borrow funds for general corporate needs of the
company. ILFC had entered the old facility worth $2 billion in
Ten major banks - Citibank of
Bank of America Corp.
JPMorgan Chase & Co.
), Barclays Bank of
Royal Bank of Canada
Credit Suisse Group
Deutsche Bank AG
The Goldman Sachs Group Inc.
) - are involved in the new credit facility.
The participation of these major banks reveals their faith in
the operating strength and substantial market share of ILFC. A vote
of confidence from large banking corporations goes a long way in
boosting the confidence of small investors as well. Apart from
increasing the size of the company's credit facility, the
replacement will also boost its liquidity.
ILFC has a strong and diversified capital structure, which it
continues to strengthen further by raising additional capital. The
company has acquired about $6.4 billion of new capital to date this
year. In the second quarter of 2012, ILFC raised approximately $753
million in secured debt to refinance its previous secured debt and
to purchase aircraft. Moreover, management is considering an
initial public offer of the company.
AIG will announce its third-quarter financial results after the
closing bell on November 1, 2012. The company currently carries a
Zacks #2 Rank, which translates into a short-term Buy rating. One
of the factors which contribute to the Zacks Rank is the direction
of revision of EPS estimate by firms. The third-quarter earnings
estimates of AIG have been on the rise over the past 30 days. Of
the 18 firms covering the stock, 12 revised their estimates upward
in the past 30 days, while no downward revisions were
The Zacks Consensus Estimate for the company's third-quarter
2012 earnings is currently 81 cents per share, up about 151%
year-over-year. For 2012, AIG's earnings are expected to be $4.39
per share, climbing about 330% over last year's level.
We maintain our long term 'Neutral' recommendation on the
AMER INTL GRP (AIG): Free Stock Analysis Report
BANK OF AMER CP (BAC): Free Stock Analysis
BARCLAY PLC-ADR (BCS): Free Stock Analysis
CITIGROUP INC (C): Free Stock Analysis Report
CREDIT SUISSE (CS): Free Stock Analysis Report
DEUTSCHE BK AG (DB): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis
MORGAN STANLEY (MS): Free Stock Analysis Report
ROYAL BANK CDA (RY): Free Stock Analysis Report
UBS AG (UBS): Free Stock Analysis Report
To read this article on Zacks.com click here.