Bank of Tokyo-Mitsubishi UFJ to Acquire Aircraft Engine Leasing Assets from Macquarie

NEW YORK—(BUSINESS WIRE)—Bank of Tokyo-Mitsubishi UFJ (BTMU) today announced that its leasing and structured asset-based financing subsidiary BTMU Capital Corporation (BTMUCC) — through BTMUCC’s subsidiary Engine Lease Finance Corporation (ELFC) — has entered into an agreement with Macquarie Bank Limited (Macquarie) to acquire 47 aircraft engine assets. The transaction is expected to be completed in the fourth quarter of 2011.

Upon completion of the transaction, ELFC’s owned and managed asset portfolio will include close to 300 modern aircraft engines. The transaction will also extend ELFC’s existing customer base to more than 80 airlines and maintenance, repair, and overhaul companies. Subject to the necessary consents, ELFC will also assume the servicing of a portfolio of seven additional engines owned by a third party, which will further enhance ELFC’s substantial portfolio of managed assets.

“This acquisition will significantly increase BTMU Capital Corporation’s global presence in the aircraft engine leasing business,” said BTMU Capital Corporation’s CEO Richard Quinn. “Engine Lease Finance Corporation is one of our strongest businesses, and following the transaction it will be regarded as one of the top three long-term operating engine lessors in the world.”

ELFC President and CEO Jon Sharp said, “The acquisition of these engines allows ELFC to immediately enhance our near-term strategies for growth. We continue to pursue revenue and portfolio growth through sale and leaseback transactions, engine order positions, and other portfolio opportunities in line with our strategic business objectives. We are also pleased to note the continued and substantial support ELFC enjoys from our parent companies.”

Engine Lease Finance Corporation is a wholly owned subsidiary of BTMU Capital Corporation, itself a wholly owned subsidiary of Bank of Tokyo-Mitsubishi UFJ.