UPDATE 1-Genesis Lease to cut borrowing capacity under pact

ATLANTA, Sept 23 (Reuters) - Aircraft leasing company Genesis Lease Ltd GLS.N, which is being bought by rival AerCap Holdings (AER.N), said on Wednesday it will curb the maximum borrowing capacity under its $1 billion credit facility to $200 million.

The move is effective Oct. 7. Genesis Lease said it expects a non-cash charge of $7.7 million in the third quarter tied to accelerated amortization of deferred financing costs.

The company said the reduction would help it save on commitment fees on the undrawn portion of the facility, which are set to increase later this month.

AerCap, which is based in the Netherlands, and Shannon, Ireland-based Genesis announced last week that they would combine in a stock deal that is expected to close in the fourth quarter. Genesis is to become a unit of AerCap.

(Reporting by Karen Jacobs, editing by Dave Zimmerman)