Fly Leasing Closes New $180 Million Term Loan

Rhea-AI Summary

Fly Leasing Limited (NYSE: FLY) has secured a new $180 million Term Loan to enhance its liquidity. The five-year loan carries an interest rate of LIBOR plus 6.00% and a 1.00% LIBOR floor, issued at a 4.5% original issue discount. This loan is secured by 11 narrowbody aircraft, four of which are unencumbered. Proceeds from the loan will be used for general corporate purposes. Currently, FLY has nine unencumbered aircraft valued at $204 million and holds no aircraft orders or significant capital commitments.

Positive

• Secured a $180 million Term Loan, enhancing liquidity.
• Strong demand from institutional lenders for the loan.
• No aircraft orders or significant capital commitments, allowing for strategic focus.

Negative

• None.

DUBLIN, Oct. 15, 2020 /PRNewswire/ -- Fly Leasing Limited (NYSE: FLY) ("FLY"), a global leader in aircraft leasing, today announced it has closed a new $180 million Term Loan (the "2020 Term Loan"). The interest rate on the five-year term loan is LIBOR plus 6.00% with a 1.00% LIBOR floor. The financing was issued at an original issue discount of 4.5%. The 2020 Term Loan will be secured by 11 narrowbody aircraft owned by FLY and its subsidiaries, four of which are unencumbered and seven of which are currently financed in FLY's 2012 Term Loan. The proceeds will be used for general corporate purposes.

"FLY is enhancing its liquidity position with the successful completion of a new $180 million term loan that attracted strong demand from a robust group of institutional lenders," said Colm Barrington, CEO of FLY. "FLY does not have any aircraft orders or other foreseeable capital commitments. Additionally, FLY only has three aircraft remaining to be remarketed in 2020, representing 2.4% of net book value."

Following completion of the financing of the collateral pool under the 2020 Term Loan and the anticipated transfers of certain unencumbered aircraft into the 2012 Term Loan, FLY will have a total of nine unencumbered narrowbody aircraft with a net book value of $204 million.

About FLY
FLY is a global aircraft leasing company with a fleet of modern, high-demand and fuel-efficient commercial jet aircraft. FLY leases its aircraft under multi-year operating lease contracts to a diverse group of airlines throughout the world. FLY is managed and serviced by BBAM LP, a worldwide leader in aircraft lease management and financing. For more information visit www.flyleasing.com.  

Contact:

Matt Dallas
Fly Leasing Limited
+1 203-769-5916
ir@flyleasing.com

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SOURCE Fly Leasing Limited

FAQ

What is the significance of the $180 million Term Loan for Fly Leasing Limited (FLY)?

The $180 million Term Loan enhances Fly Leasing's liquidity and allows for strategic financial management.

What interest rate is associated with Fly Leasing Limited's new Term Loan?

The interest rate on the new Term Loan is LIBOR plus 6.00% with a 1.00% LIBOR floor.

How many unencumbered aircraft does Fly Leasing Limited have after closing the new loan?

Following the loan closing, Fly Leasing will possess nine unencumbered aircraft valued at $204 million.

What will the proceeds from the $180 million Term Loan be used for?

The proceeds will be utilized for general corporate purposes.

What is the original issue discount of Fly Leasing Limited's Term Loan?

The Term Loan was issued at a 4.5% original issue discount.