Summary
FTAI Aviation Ltd. (FTAI) announced the execution of a Fourth Amended and Restated Credit Agreement, significantly enhancing its financial flexibility. This agreement establishes a new Revolving Credit Facility with a total principal amount of up to $2,025,000,000, maturing on April 24, 2031. This facility, which includes a $50 million sub-limit for letters of credit, will be utilized for working capital, general corporate purposes, and strategic initiatives such as permitted acquisitions and investments. The new credit facility is underpinned by a robust guarantee structure from the Company and its material wholly-owned subsidiaries, and it is secured by a first-priority lien on substantially all of the assets of the borrower and guarantors. The agreement includes customary covenants, both affirmative and negative, designed to maintain financial health and operational integrity. Key financial covenants require maintaining a minimum Interest Coverage Ratio of 3.00x and a maximum Debt to EBITDA Ratio of 4.00x, with provisions for temporary increases in the latter in connection with significant acquisitions.
Key Highlights
- 1FTAI Aviation Ltd. has entered into a Fourth Amended and Restated Credit Agreement, dated April 24, 2026.
- 2The new agreement establishes a Revolving Credit Facility of up to $2,025,000,000, maturing on April 24, 2031.
- 3The facility includes a $50 million sub-limit for letters of credit.
- 4Proceeds are designated for working capital, general corporate purposes, and strategic investments, including acquisitions.
- 5The credit facility is guaranteed by FTAI Aviation Ltd. and its material wholly-owned subsidiaries.
- 6The facility is secured by a first-priority lien on substantially all assets of the borrower and guarantors, with customary exclusions.
- 7Key financial covenants include a minimum Interest Coverage Ratio of 3.00x and a maximum Debt to EBITDA Ratio of 4.00x, with flexibility for acquisitions.