Aviation Capital Group Announces Completion of a $270 Million Private Debt Offer

The notes were sold in a private placement to variousinstitutional investors. Merrill Lynch & Co. and Calyon Securitieswere the joint lead placement agents, and HSH N Financial SecuritiesLLC was the co-agent for the offering. Aviation Capital Group intendsto use the net proceeds of the offering to refinance existing secureddebt and pre-fund future aircraft purchases.

The notes have not been registered under the Securities Act of1933 or any state securities laws and may not be offered or sold inthe United States without registration or an applicable exemption fromregistration requirements. This news release is neither an offer tosell nor the solicitation of an offer to buy the notes or any othersecurities and shall not constitute an offer, solicitation or sale inany jurisdiction in which such an offer, solicitation or sale isunlawful.

One of the First Tier aircraft leasing enterprises in the world,Aviation Capital Group is owner/lessor and portfolio manager of adiversified fleet of commercial jet aircraft leased to the world'sleading airlines. Its portfolio includes more than 230 aircraft leasedto 98 airlines in 43 countries. ACG has 110 aircraft on future orderfrom Airbus and Boeing. ACG's Capital Markets Group also providesasset management and remarketing services to aircraft investors andinstitutional clients. ACG was founded in 1989 and is a wholly ownedsubsidiary of Pacific LifeCorp.