8-KOther Events

FTAI Aviation Ltd. 8-K Report, Corporate Update (Sep 14, 2018)

Filed September 14, 2018For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) announced on September 14, 2018, the pricing of a private offering of $300.0 million in aggregate principal amount of senior notes due 2025. These notes will carry a 6.50% annual interest rate and were issued at a slight discount of 98.50% of their principal value, plus accrued interest starting September 18, 2018. The primary use of the net proceeds from this offering is to deleverage the company's balance sheet, with $125.0 million designated to repay outstanding borrowings under its existing credit agreement and cover associated fees. The remaining funds will be allocated to general corporate purposes, including future investment opportunities, indicating a strategic approach to both debt management and growth. The offering was conducted under Rule 144A for qualified institutional buyers in the U.S. and under Regulation S for international investors, and the notes are not registered under the Securities Act of 1933. Investors should note the cautionary language regarding forward-looking statements, as actual results may differ from expectations due to various risks and uncertainties.

Key Highlights

  • 1FTAI Aviation Ltd. priced a $300.0 million private offering of senior notes due 2025.
  • 2The notes will bear an annual interest rate of 6.50%.
  • 3The offering was priced at 98.50% of the principal amount, plus accrued interest.
  • 4A significant portion of the proceeds ($125.0 million) will be used to repay outstanding debt under the company's credit agreement.
  • 5Remaining proceeds are earmarked for general corporate purposes, including future investments.
  • 6The offering was conducted via private placement to qualified institutional buyers (Rule 144A) and international investors (Regulation S).
  • 7The notes are not registered under the Securities Act of 1933 and have resale restrictions.

Frequently Asked Questions

The primary purpose of the $300.0 million senior notes offering is to refinance existing debt. Specifically, $125.0 million of the proceeds will be used to repay outstanding borrowings under the company's credit agreement, with the remainder allocated to general corporate purposes and future investments.

The senior notes due 2025 have an aggregate principal amount of $300.0 million, a coupon interest rate of 6.50% per annum, and were issued at 98.50% of their principal amount plus accrued interest.

The notes were offered in a private placement. In the United States, they were offered to qualified institutional buyers under Rule 144A of the Securities Act. Outside the United States, they were offered to persons under Regulation S of the Securities Act.

These notes were offered in a private placement and are not registered under the Securities Act or state securities laws. Unless so registered, they may not be offered or sold in the U.S. without registration or an applicable exemption, suggesting they are not freely tradable in the public market.