8-KMaterial AgreementsExhibits & Filings

FTAI Aviation Ltd. 8-K Report, Material Agreement (Sep 6, 2019)

Filed September 6, 2019For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) announced on September 6, 2019, the entry into a material definitive agreement concerning a registered public offering of 3,000,000 of its 8.25% Fixed-to-Floating Rate Series A Cumulative Perpetual Redeemable Preferred Shares. The offering, with a liquidation preference of $25.00 per share, is being conducted through a syndicate of underwriters led by Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, UBS Securities LLC, and Stifel, Nicolaus & Company, Incorporated. The company has also granted the underwriters an option to purchase an additional 450,000 preferred shares. The net proceeds from this offering are intended for general corporate purposes, including future acquisitions and investments, indicating a strategic focus on growth and expansion. The offering is expected to close on September 12, 2019. The company has provided customary representations, warranties, and agreements, and has agreed to customary indemnification provisions for the underwriters. This issuance of preferred shares represents a significant capital raise for FTAI, aimed at bolstering its financial flexibility and supporting its strategic objectives. Investors should note the fixed-to-floating rate nature of the preferred shares and the potential dilution that could arise from the issuance.

Key Highlights

  • 1FTAI Aviation Ltd. entered into an underwriting agreement for a public offering of 3,000,000 Series A Cumulative Perpetual Redeemable Preferred Shares.
  • 2The offering price for the preferred shares is $25.00 per share, with a liquidation preference of $25.00 per share.
  • 3An option for underwriters to purchase an additional 450,000 preferred shares has been granted.
  • 4The net proceeds from the offering are earmarked for general corporate purposes, including future acquisitions and investments.
  • 5The offering is expected to close on September 12, 2019.
  • 6The preferred shares carry an 8.25% fixed-to-floating rate dividend.
  • 7The company has agreed to customary indemnification and other provisions with the underwriters.

Frequently Asked Questions

This 8-K filing announces that FTAI Aviation Ltd. has entered into a material definitive agreement, specifically an underwriting agreement, to conduct a registered public offering of its Series A Cumulative Perpetual Redeemable Preferred Shares.

The company plans to raise capital by selling 3,000,000 preferred shares at $25.00 per share, totaling $75 million, before considering the underwriters' option to purchase an additional 450,000 shares.

The net proceeds are intended for general corporate purposes, with a specific mention of funding future acquisitions and investments, suggesting a strategy for business expansion.

The offering is anticipated to close on September 12, 2019, subject to the terms and conditions outlined in the underwriting agreement.