Summary
FTAI Aviation Ltd. (FTAI) has announced the issuance of $500.0 million in 5.875% Senior Notes due 2033. This strategic debt offering is primarily aimed at refinancing existing debt, specifically to fully redeem the company's outstanding 9.750% Senior Notes due 2027 and to repay outstanding amounts under its revolving credit facility. The company will utilize a portion of the proceeds to deposit the redemption price for the 2027 Notes, effectively retiring that debt on October 10, 2024. The remaining proceeds are earmarked for general corporate purposes, which may include further debt reduction. The new notes mature in 2033, offering a significantly lower interest rate compared to the soon-to-be-redeemed 2027 Notes, indicating a proactive approach to managing interest expenses and extending the company's debt maturity profile. The notes are senior unsecured obligations of the Issuer and are guaranteed on a senior unsecured basis by FTAI Aviation Ltd.
Key Highlights
- 1FTAI Aviation Ltd. issued $500.0 million of 5.875% Senior Notes due 2033.
- 2Proceeds will be used to redeem all outstanding 9.750% Senior Notes due 2027 at a cost of 102.438% of principal.
- 3A portion of the proceeds will repay outstanding amounts under the company's revolving credit facility.
- 4The new notes have a maturity date of April 15, 2033.
- 5The interest rate on the new notes (5.875%) is substantially lower than the 2027 Notes (9.750%).
- 6The notes are senior unsecured obligations of the Issuer and are guaranteed by FTAI Aviation Ltd.
- 7The offering was made to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.