Tokyo Century Corporation outlines plans for acquisition of Aviation Capital Group

Tokyo Century Corporation provided (05-Nov-2019) an update on its planned acquisition of Aviation Capital Group (ACG):

• Deal structure: Tokyo Century (TC) to acquire the remaining 75.5% interest in ACG from Pacific Life Insurance Company. The stake will be acquired through TC Skyward Aviation US, a 100% subsidiary of TC;
• Purchase price: Approximately USD3 billion. The purchase price will be adjusted based on the financial figures as of closing in accordance with certain procedures set out in the definitive agreement. The exchange rate was set at USD1 = JPY107.10 (as of 06-Sep-2019);
• Financing: TC plans to finance this acquisition in line with its policy to maintain financial stability. The company will use cash-on-hand and bridge loans at time of transaction close and will later refinance in stages through permanent financing. TC is examining various financing options, including loans from financial institutions and hybrid financing;
• Closing: Expected in Dec-2019, after obtaining customary regulatory approvals. [more - original PR]