8-KOther EventsExhibits & Filings

FTAI Aviation Ltd. 8-K Report, Corporate Update (Dec 6, 2018)

Filed December 6, 2018For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) announced a registered direct offering where it sold approximately 1.26 million common shares to an existing shareholder at a price of $15.83 per share, closing on December 6, 2018. This offering raised approximately $19.7 million in net proceeds for the company. These funds are designated for general corporate purposes, including the repayment of outstanding revolving borrowings and the financing of future investments, providing FTAI with additional liquidity. In conjunction with the share issuance, FTAI granted an option to its Manager, FIG LLC, to purchase 10% of the shares sold in the offering (approximately 126,342 shares) at the same offering price. This option is subject to specific vesting and exercise terms outlined in the company's existing management and incentive award plans, with provisions for accelerated vesting in the event of a change in control or termination of the Manager's services.

Key Highlights

  • 1FTAI Aviation Ltd. completed a registered direct offering of 1,263,423 common shares.
  • 2The offering was made to an existing shareholder at a price of $15.83 per share.
  • 3Net proceeds of approximately $19.7 million were raised from the offering.
  • 4Proceeds will be used for general corporate purposes, including debt repayment and future investments.
  • 5An option was granted to the Manager (FIG LLC) to purchase 126,342 common shares.
  • 6The Manager's option is exercisable at $15.83 per share and vests over 30 months, with acceleration provisions.
  • 7The offering was conducted under an existing automatic shelf registration statement.

Frequently Asked Questions

This 8-K filing was primarily to report on the completion of a registered direct offering of common shares and the subsequent granting of an option to the company's Manager.

FTAI Aviation raised approximately $19.7 million in net proceeds from the sale of its common shares in the registered direct offering.

The company intends to use the net proceeds for general corporate purposes, which include repaying outstanding revolving borrowings and funding future investments.

The Manager, FIG LLC, was granted an option to purchase 10% of the shares sold in the offering at the same price ($15.83 per share). This option vests incrementally over 30 months following the grant date, with provisions for full exercisability upon a change in control or termination of the Manager's services.