Summary
FTAI Aviation Ltd. (FTAI) announced the pricing of its private offering for $250 million in aggregate principal amount of senior unsecured notes due in 2022. These notes will carry an interest rate of 6.75% and were issued at a discount of 97.0% of their face value. The primary use of the net proceeds from this offering is to fully repay the company's existing $100 million indebtedness under its credit agreement, along with associated fees and expenses. The remaining funds are allocated for general corporate purposes, including the potential funding of future investments. The offering was made to qualified institutional buyers and persons outside the United States, in accordance with applicable securities regulations.
Key Highlights
- 1FTAI Aviation Ltd. priced a $250 million private offering of senior unsecured notes due 2022.
- 2The notes carry a coupon rate of 6.75% per annum.
- 3The offering was priced at 97.0% of the face value, indicating a slight discount.
- 4Net proceeds will be used to fully repay a $100 million outstanding credit agreement debt.
- 5Remaining proceeds are earmarked for general corporate purposes and future investments.
- 6The offering was conducted under Rule 144A and Regulation S, targeting institutional and international investors.
- 7These securities were not registered under the Securities Act, relying on exemptions.
Frequently Asked Questions
The primary purpose is to repay FTAI's existing $100 million credit agreement debt and cover related fees and expenses. The remaining proceeds are intended for general corporate purposes and to fund future investments.
The new senior unsecured notes due 2022 will have an annual interest rate of 6.75%.
No, these notes were offered privately to qualified institutional buyers in the U.S. under Rule 144A and to persons outside the U.S. under Regulation S. They were not registered with the Securities Act.
This means the notes were issued at a slight discount. For every $100 of face value, investors paid $97. This effectively increases the yield on the notes slightly above the stated coupon rate.