8-KMaterial AgreementsFinancial Events

FTAI Aviation Ltd. 8-K Report, Material Agreement (May 12, 2020)

Filed May 12, 2020For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) filed an 8-K on May 12, 2020, reporting an amendment to its existing credit agreement. This amendment, identified as Amendment No. 4, was entered into on May 11, 2020. The key changes primarily focus on providing the company with greater financial flexibility. Specifically, the amendment permits FTAI to incur additional secured indebtedness to finance potential acquisitions of aviation assets, subject to certain limitations. Furthermore, it introduces a provision requiring the pledge of certain aviation assets as additional collateral if borrowings under the credit agreement exceed $150,000,000. The amendment also addresses operational updates, including procedures for selecting a replacement benchmark interest rate should LIBOR become unavailable.

Key Highlights

  • 1FTAI entered into Amendment No. 4 to its Credit Agreement dated June 16, 2017.
  • 2The amendment allows for the incurrence of additional secured indebtedness for potential aviation asset acquisitions.
  • 3New collateral requirements are introduced: aviation assets will be pledged if borrowings exceed $150,000,000.
  • 4The amendment includes provisions for replacing LIBOR as a benchmark interest rate.
  • 5This move provides increased financial flexibility for strategic acquisitions.
  • 6The changes are effective as of May 11, 2020.

Frequently Asked Questions

The primary purpose of Amendment No. 4 is to enhance FTAI's financial flexibility by allowing the company to secure additional financing for potential aviation asset acquisitions and by establishing conditions for pledging additional collateral.

FTAI will be required to pledge certain aviation assets as additional collateral if its borrowings under the Existing Credit Agreement exceed $150,000,000.

The amendment directly facilitates potential acquisitions by permitting the incurrence of additional secured indebtedness, subject to specific limitations, to finance such transactions.

The amendment incorporates procedures for the parties to select a replacement benchmark interest rate in the event that LIBOR is no longer available or suitable as a reference rate for determining interest under the credit agreement.