Udvar-Hazy's Air Lease Raises $3.3 Billion for Jets

Air Lease Corp., Steven Udvar-Hazy’s new jet-leasing company, said it secured $3.3 billion in financing and has begun buying aircraft with plans to exceed 100 airliners by early next year.

Air Lease raised about $1.3 billion of equity capital and received $2 billion of debt commitments, John Plueger, the Los Angeles-based lessor’s president and chief operating officer, said in a statement today.

“The company is already in the process of acquiring a portfolio of aircraft and has lease commitments from a large group of diversified airlines,” Air Lease said.

Udvar-Hazy founded International Lease Finance Corp. in 1973, selling it to insurer American International Group Inc. in 1990. He built it into the world’s largest plane lessor and the biggest customer for Boeing Co. and Airbus SAS before resigning in February. ILFC had lost access to its normal sources of funding because of its parent company’s woes amid a $182.3 billion government bailout during the recession.

Plueger, who had helped lead ILFC for more than two decades, left in March to rejoin Udvar-Hazy and help found Air Lease.

FBR Capital Markets managed Air Lease’s private placement of equity, while Moelis & Co. acted as financial adviser.

To contact the reporter on this story: Susanna Ray in London at sray7@bloomberg.net.

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