8-KMaterial AgreementsExhibits & Filings

FTAI Aviation Ltd. 8-K Report, Material Agreement (Sep 14, 2021)

Filed September 14, 2021For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) announced the closing of a public offering of common shares on September 14, 2021. The company successfully sold 12,000,000 shares at an offering price of $25.50 per share, generating gross proceeds of approximately $306 million. An additional option for underwriters to purchase up to 1,800,000 shares was also granted. The net proceeds from this offering, estimated at $291.7 million after deducting underwriting discounts and expenses, are intended to be used for the repayment of outstanding amounts under senior unsecured bridge term loans. These loans were initially obtained to finance the acquisition of Transtar, LLC, a short-line railroad subsidiary, which closed on July 28, 2021. The offering was conducted under the company's existing automatic shelf registration statement.

Key Highlights

  • 1FTAI Aviation Ltd. completed a public offering of 12,000,000 common shares.
  • 2The offering price was set at $25.50 per share.
  • 3Gross proceeds from the offering amounted to approximately $306 million.
  • 4The company granted underwriters an option to purchase up to an additional 1,800,000 shares.
  • 5Net proceeds of approximately $291.7 million were generated after fees and expenses.
  • 6Proceeds will be used to repay a portion of bridge term loans used to finance the acquisition of Transtar, LLC.
  • 7The acquisition of Transtar, LLC was completed on July 28, 2021.

Frequently Asked Questions

The primary purpose of this stock offering was to raise capital to repay a portion of the outstanding amounts under senior unsecured bridge term loans. These loans were used to finance the recent acquisition of Transtar, LLC.

The company offered 12,000,000 common shares at a price of $25.50 per share. Additionally, the underwriters had an option to purchase up to 1,800,000 more shares at the same price, less underwriting discounts.

After deducting underwriting discounts, commissions, and estimated offering expenses, FTAI Aviation Ltd. received net proceeds of approximately $291.7 million from the offering.

Transtar, LLC is a wholly-owned short-line railroad subsidiary of United States Steel Corporation. FTAI acquired 100% of its equity interests on July 28, 2021, likely as part of its strategy in the transportation and infrastructure sector.