8-KMaterial AgreementsExhibits & Filings

FTAI Aviation Ltd. 8-K Report, Material Agreement (Mar 10, 2023)

Filed March 10, 2023For Securities:FTAIFTAIMFTAIN

Summary

FTAI Aviation Ltd. (FTAI) announced on March 10, 2023, through an 8-K filing, its entry into a material definitive agreement for a registered public offering of 2,600,000 shares of its 9.500% Fixed-Rate Reset Series D Cumulative Perpetual Redeemable Preferred Shares. The offering, priced at $25.00 per share, is expected to raise significant capital for general corporate purposes. The company has also granted underwriters an option to purchase an additional 390,000 preferred shares. The offering is being conducted under an automatic shelf registration statement and is expected to close on March 15, 2023. This move indicates FTAI's strategy to bolster its financial resources. Investors should note the specific terms of the preferred shares, including their fixed-rate reset feature and cumulative dividend, which will impact future income streams and potential returns.

Key Highlights

  • 1FTAI Aviation Ltd. entered into an underwriting agreement to sell 2,600,000 Series D Cumulative Perpetual Redeemable Preferred Shares.
  • 2The offering is a registered public offering at a price of $25.00 per share.
  • 3The company granted underwriters an option to purchase up to an additional 390,000 preferred shares.
  • 4Net proceeds from the offering are intended for general corporate purposes.
  • 5The offering is expected to close on March 15, 2023.
  • 6The Series D Preferred Shares carry a fixed dividend rate of 9.500% and are redeemable.
  • 7FIG LLC will receive options to purchase FTAI ordinary shares equal to 10% of the gross capital raised.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce FTAI Aviation Ltd.'s entry into a material definitive agreement, specifically an underwriting agreement for a public offering of its Series D Cumulative Perpetual Redeemable Preferred Shares.

FTAI Aviation Ltd. expects to raise approximately $65 million from the sale of 2,600,000 preferred shares at $25.00 per share. If the underwriters exercise their option to purchase an additional 390,000 shares, the total gross proceeds could reach approximately $74.75 million.

The company expects to use the net proceeds from the offering for general corporate purposes.

The Series D Preferred Shares have a par value of $0.01, a liquidation preference of $25.00 per share, and a dividend rate of 9.500% fixed-rate reset, cumulative, perpetual, and redeemable.