Summary
FTAI Aviation Ltd. (FTAI) announced via an 8-K filing on November 22, 2023, that its subsidiary, Fortress Transportation and Infrastructure Investors LLC, has closed a private offering of $500.0 million in aggregate principal amount of 7.875% senior notes due 2030. These notes are senior unsecured obligations of the Issuer, guaranteed on a senior unsecured basis by FTAI Aviation Ltd., and rank equally with other senior unsecured indebtedness but are effectively subordinated to secured obligations. The net proceeds from this offering are intended for repaying outstanding borrowings under the company's revolving credit facility and for general corporate purposes, including potential future acquisitions and investments.
Key Highlights
- 1FTAI Aviation's subsidiary successfully closed a $500 million private offering of 7.875% senior notes due 2030.
- 2The notes are guaranteed by FTAI Aviation Ltd., providing a senior unsecured guarantee.
- 3Proceeds will be used to repay outstanding revolving credit facility borrowings and for general corporate purposes, including potential acquisitions.
- 4The Indenture includes covenants that limit the ability of the Issuer and restricted subsidiaries to incur additional indebtedness, encumber assets, and make restricted payments, among other restrictions.
- 5Noteholders have the right to require repurchase at 101% of principal in the event of a Change of Control.
- 6The company has redemption options for the notes, with varying prices and conditions starting from December 1, 2026.
- 7The notes were offered privately and are not registered under the Securities Act of 1933, requiring exemptions for sale in the U.S.
Frequently Asked Questions
The net proceeds from the offering are intended to repay outstanding borrowings under FTAI Aviation's revolving credit facility and for general corporate purposes, which may include funding future acquisitions and investments.
The notes carry an annual interest rate of 7.875% and will mature on December 1, 2030. Interest is payable semi-annually in arrears on June 1 and December 1.
The notes are senior unsecured obligations of the Issuer and are fully and unconditionally guaranteed on a senior unsecured basis by FTAI Aviation Ltd. They rank equally with other senior unsecured indebtedness of the Issuer and are effectively subordinated to any secured obligations.
In the event of a Change of Control, noteholders have the right to require the Issuer to repurchase their notes at 101% of the principal amount, plus accrued and unpaid interest.