Summary
FTAI Aviation Ltd. (FTAI), through its subsidiary Fortress Transportation and Infrastructure Investors LLC, has entered into a new Credit Agreement establishing a $75 million revolving credit facility. This facility, maturing on June 16, 2020, will be used for general corporate purposes, including working capital, permitted acquisitions, and other investments. Up to $25 million of the facility can be used for issuing letters of credit. The credit facility is initially secured by capital stock of certain subsidiaries, though subsidiaries may be required to provide guarantees under specific circumstances. The agreement includes customary covenants regarding financial reporting, business conduct, and maintenance of assets, as well as significant negative covenants that restrict the company's ability to incur debt, encumber assets, and make restricted payments, largely aligning with existing senior unsecured note restrictions. Importantly, the facility has financial covenants requiring a minimum appraised aviation asset to commitment ratio of 3.00:1.00 and a maximum debt-to-equity ratio of 1.65:1.00.
Key Highlights
- 1FTAI Aviation Ltd. has secured a new $75 million revolving credit facility.
- 2The facility matures on June 16, 2020.
- 3Proceeds are earmarked for working capital, permitted acquisitions, and general corporate purposes.
- 4The credit line can also support up to $25 million in letters of credit.
- 5The facility is initially secured by the capital stock of certain subsidiaries.
- 6Key financial covenants include a 3.00:1.00 appraised aviation asset to commitment ratio and a 1.65:1.00 debt-to-equity ratio.
- 7Customary affirmative and negative covenants, similar to existing debt, are included.