8-KOther Events

FTAI Aviation Ltd. 8-K Report, Corporate Update (Jan 17, 2020)

Filed January 17, 2020For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) subsidiary, Jefferson Energy Companies, announced plans to offer approximately $265.8 million in Series 2020 Bonds to refund existing debt, finance facility development and acquisition, and cover issuance costs. This offering is intended to enhance Jefferson's infrastructure and operational capacity. Key to investors is Jefferson's projected financial performance post-completion of these projects, which is anticipated by the fourth quarter of 2020. They expect annual run-rate revenues of $130 to $150 million and EBITDA of $70 to $80 million, based on significant storage capacity and utilization rates. It's important to note these projections exclude any future projects not yet announced, and the bonds are being offered to a limited group of institutional investors, not the general public.

Key Highlights

  • 1Jefferson Energy Companies, a subsidiary of FTAI, plans to issue approximately $265.8 million in Series 2020 Bonds.
  • 2The bond proceeds will be used for refunding debt, financing facility development and acquisition, and covering issuance costs.
  • 3Projected annual run-rate revenues for Jefferson's facilities are estimated between $130 million and $150 million.
  • 4Projected annual run-rate EBITDA for Jefferson's facilities is estimated between $70 million and $80 million.
  • 5These financial projections are based on the completion of funded projects by Q4 2020 and assume specific storage capacity and utilization rates.
  • 6The Series 2020 Bonds are special, limited obligations of The Port of Beaumont Navigation District and do not constitute indebtedness of any governmental entity.
  • 7The offering is restricted to Qualified Institutional Buyers and Institutional Accredited Investors under specific SEC rules, not the general public.

Frequently Asked Questions

The primary purpose is to refinance existing debt, fund the development, construction, and acquisition of certain facilities, and cover the costs associated with issuing the bonds.

FTAI projects that Jefferson's facilities will generate annual run-rate revenues between $130 million and $150 million and annual run-rate EBITDA between $70 million and $80 million, once the funded projects are completed by Q4 2020.

The bonds are being offered only to "qualified institutional buyers" and "institutional accredited investors" as defined under specific rules of the Securities Act of 1933. This means the offering is not open to the general public.

No, the Series 2020 Bonds are special, limited obligations of The Port of Beaumont Navigation District of Jefferson County, Texas, and are secured solely by the trust estate and pledged collateral. They do not constitute indebtedness or a pledge of the full faith and credit of the Port, the State of Texas, or any other political subdivision. The bond issuance is structured to not create direct debt for FTAI or these governmental entities.