8-KOther Events

FTAI Aviation Ltd. 8-K Report, Corporate Update (May 17, 2019)

Filed May 17, 2019For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) announced on May 17, 2019, the pricing of a private offering of additional 6.50% senior notes due 2025. The company is issuing $150.0 million in aggregate principal amount of these notes at a slight discount to par (99.125% of principal). This offering will supplement the existing $300.0 million of these notes already outstanding, effectively increasing the total principal amount of this debt issuance. The net proceeds from this offering are earmarked for general corporate purposes. A key detail for investors is that these funds are intended to support future investments, with a specific mention of potential aviation-related investments. The company cautions that this is a forward-looking statement and actual use of proceeds may vary, subject to various risks and uncertainties outlined in their SEC filings.

Key Highlights

  • 1FTAI Aviation priced an offering of $150.0 million of additional 6.50% senior notes due 2025.
  • 2The notes were issued at 99.125% of their principal amount, plus accrued interest.
  • 3The offering increases the total outstanding principal of these senior notes to $450.0 million ($300.0M existing + $150.0M new).
  • 4Proceeds are intended for general corporate purposes, including future investments.
  • 5A specific focus for future investments mentioned is within the aviation sector.
  • 6The offering was conducted privately to qualified institutional buyers and non-U.S. persons under specific securities regulations (Rule 144A and Regulation S).
  • 7The company includes standard cautionary language regarding forward-looking statements and potential risks.

Frequently Asked Questions

The net proceeds from the offering are intended for general corporate purposes, which include funding future investments, with a particular mention of potential aviation investments.

FTAI is adding $150.0 million in aggregate principal amount of 6.50% senior notes due 2025. This brings the total outstanding principal amount of these notes to $450.0 million.

The new notes carry a coupon rate of 6.50% and mature in 2025, consistent with the previously issued notes.

The offering was conducted privately under Rule 144A and Regulation S, meaning the notes were not registered under the Securities Act and may have restrictions on resale in the United States.