Summary
FTAI Aviation Ltd. (FTAI) announced the closing of its private offering for $400.0 million in aggregate principal amount of additional 6.50% senior notes due 2025. These notes were issued at a premium of 101.750% of principal. A significant portion of the proceeds, specifically $300.0 million, was utilized to repurchase its 6.75% Senior Notes due 2022 through a cash tender offer. The company accepted $300.0 million of these 2022 notes, paying an early tender premium and accrued interest. The company's total outstanding aggregate principal amount of its senior notes due 2025 now stands at $850.0 million. The net proceeds not used for the tender offer will be allocated to general corporate purposes, potentially including future acquisitions and investments, with a specific mention of aviation investments. This strategic debt management aims to optimize the company's capital structure by refinancing existing debt with new, longer-term notes and managing tender offer costs.
Key Highlights
- 1Closed a private offering of $400.0 million in aggregate principal amount of 6.50% senior notes due 2025 at an issue price of 101.750% of principal.
- 2Used $300.0 million of the net proceeds to repurchase 6.75% Senior Notes due 2022 via a cash tender offer.
- 3Accepted $300.0 million of the 2022 notes for purchase, including an early tender premium and accrued interest.
- 4Total outstanding aggregate principal amount of 6.50% senior notes due 2025 now reaches $850.0 million.
- 5The new 2025 notes and existing 2025 notes will be treated as a single class for indenture purposes.
- 6Remaining net proceeds to be used for general corporate purposes, including potential acquisitions and aviation investments.
- 7The offering of additional notes was conducted as a private placement and was not registered under the Securities Act of 1933.