O'Melveny Represents ILFC in Sale of US$4.4 Billion in Notes

August 24, 2010



Andrea Rodeschini
O'Melveny & Myers LLP

Amber Burke
O'Melveny & Myers LLP

LOS ANGELES, CALIFORNIA ─ AUGUST 23, 2010 O’Melveny & Myers LLP represented International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc. (AIG), in the recently completed sale of US$4.4 billion in secured and unsecured notes.  ILFC has used the bulk of the proceeds to repay in full US$3.9 billion in loans extended to ILFC by AIG Funding, Inc. from the Federal Reserve Bank of New York.


ILFC was represented by O’Melveny partners John-Paul Motley and David Johnson, with support from counsel Patrick Lawler, Scott Graziano, and Yvonne Ying.


About O’Melveny & Myers LLP

With approximately 900 lawyers in 14 offices worldwide, O’Melveny & Myers LLP helps industry leaders across a broad array of sectors manage the complex challenges of succeeding in the global economy. We are a values-driven law firm, guided by the principles of excellence, leadership, and citizenship. Our commitment to these values is reflected in our dedication to improving access to justice through pro bono work and championing initiatives that increase the diversity of the legal profession. For more information, please visit www.omm.com.


ILFC issued the following press release on August 23, 2010:


ILFC Repays Loans Backed by US Government in Full and Three Years Early

Completion of $4.4 Billion Transaction Accelerates Momentum


LOS ANGELES--(BUSINESS WIRE)--International Lease Finance Corporation (ILFC), a wholly-owned subsidiary of American International Group, Inc. (NYSE: AIG), announced today that it completed the sale of $4.4 billion in secured and unsecured notes and used the bulk of the proceeds to repay in full $3.9 billion in loans extended to ILFC by AIG Funding, Inc. from the Federal Reserve Bank of New York (FRBNY).


The repayment strengthens ILFC’s financial position by releasing approximately $10 billion of collateral previously pledged to the FRBNY. The new debt is divided into four smaller maturities with payments that are now due in later years, enhancing ILFC’s flexibility as it moves forward. These notes issuances, along with previous debt issuances, aircraft sales and extensions of debt maturities, bring the total liquidity raised by ILFC in the last five months to more than $12.5 billion.


ILFC Chief Executive Officer, Henri Courpron commented, “On behalf of the entire ILFC team, I want to express our appreciation to the U.S. government and to our parent company AIG for extending this temporary yet critical assistance to ILFC.” “The market has once again given ILFC a vote of confidence,” AIG CEO Robert Benmosche said. “This capital raise, combined with the capital raises earlier this year, demonstrates that ILFC is getting stronger with each passing day. ILFC has made substantial and impressive progress in dealing with its liquidity needs.”


“These note offerings, which were increased from $2.5 to $4.4 billion, are a direct reflection of our company’s viability and future prospects as a leader in leasing aircraft to the world’s airlines,” said Courpron.


“With more than $13 billion in new and advanced aircraft on order, ILFC has the momentum to continue to serve the commercial aviation market at a time when the opportunity for future growth is most promising,” Courpron said. “My sincere appreciation to all the employees of ILFC that have remained committed to our business through supporting each other and servicing our customers.”


Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect ILFC’s current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Except for ILFC’s ongoing obligation to disclose material information as required by federal securities laws, it does not intend to update you concerning any future revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof.


About ILFC

ILFC is the international market leader in the leasing and remarketing of advanced technology commercial jet aircraft to airlines around the world. ILFC owns a portfolio consisting of approximately 950 jet aircraft.


About AIG

American International Group, Inc. (AIG) is a leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.