American International Group Inc.’s (AIG) jet leasing unit International Lease Finance Corporation (“ILFC”) has planned to swap new debt for old notes.

AIG’s subsidiary ILFC has stated that it will exchange up to $2.75 billion in new publicly registered debt for old private notes.

According to ILFC, the newly registered notes of $2.75 billion will involve an exchange of up to $1.25 billion in 8.625% registered senior notes due 2015 for any and all of its outstanding privately placed 8.625% senior notes due 2015. In addition, it will involve swapping up to $1.5 billion in 8.75% registered senior notes due 2017 for any and all of its outstanding privately placed 8.75% senior notes due 2017.

Further, these notes are registered under the Securities Act of 1933, as amended. Additionally, the registered notes will contain terms almost identical to those for the private notes, except for the elimination of certain transfer restrictions, registration rights and additional interest provisions.

Also, this swap agreement will not offer any proceeds to AIG or its unit ILFC. It will also not affect the company’s outstanding debt levels.

Recently, ILFC has also secured a $1.3 billion term loan with a group of 15 banks from Europe, Asia and North America., which was funded over the next 12 months and was set to mature in 2018. Furthermore, its proceeds are expected to be used to prepay ILFC’s existing unsecured and secured bank facilities due in October 2011 and 2012.

Besides, ILFC has also secured the right to increase its term loan commitment by $200 million from additional lenders.

Citigroup Inc. (C) and Credit Suisse Group (CS) will act as the joint structuring and placement agents for ILFC’s term loan, while BNP Paribas will act as an additional joint placement agent for the term loan commitment facility.

Also, AIG’s unit ILFC has recently announced the promotion of its Chief Financial Officer (CFO) to President. Fred Cromer is now the President of ILFC having replaced Alan Lund, who is retiring from ILFC. ILFC also announced the promotion of Philip Scruggs, Chief Marketing Officer, to Executive Vice President.

 
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