FTAI Aviation Announces Full Redemption of Outstanding 8.00% Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares

Rhea-AI Summary

FTAI Aviation (NASDAQ: FTAI) has announced the complete redemption of its 4,940,000 outstanding 8.00% Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares (Series B Shares). The redemption will occur on February 16, 2025, with shareholders receiving $25.00 per Series B Share in cash, plus accumulated and unpaid distributions totaling $2,405,404.25.

The Series B Shares, trading under the ticker symbol 'FTAIO,' will be fully redeemed according to the Notice of Full Redemption sent to shareholders on January 17, 2025. Holders can obtain additional redemption procedure information from Equiniti Trust Company,

Positive

• Full redemption of preferred shares indicates strong cash position
• Company's ability to pay $25.00 per share plus accumulated distributions demonstrates financial stability

Negative

• Additional cash outflow of approximately $126.4 million for redemption ($123.5M principal + $2.9M distributions)

Insights

Fixed Income Analyst

The redemption of FTAI's Series B preferred shares at $25.00 per share plus accumulated distributions represents a strategic refinancing move to optimize the company's capital structure. With 4.94 million shares being redeemed, this amounts to approximately $123.5 million in principal redemption, plus $2.4 million in distributions. The 8.00% fixed-to-floating rate structure of these shares was likely becoming less attractive in the current interest rate environment.

The timing suggests FTAI is taking advantage of improved market conditions and potentially lower cost of capital options. By eliminating these higher-cost preferred shares, the company can reduce its dividend obligations and potentially replace them with more cost-effective financing. The move should enhance financial flexibility and could positively impact the bottom line through reduced financing costs.

Corporate Finance Specialist

This redemption signals strong liquidity position and capital management strategy at FTAI Aviation. For perspective, think of this like refinancing a mortgage - the company is essentially paying off a more expensive financial obligation that could have become costlier due to its floating rate feature. The $125.9 million total outlay (including distributions) demonstrates robust cash position and confidence in future cash flows.

For regular shareholders, this is positive news as it reduces the claims senior to common equity in the capital structure. The elimination of the preferred dividend obligation frees up cash flow that can be redirected to growth initiatives or returned to common shareholders. The February 16 redemption date provides sufficient notice to preferred shareholders while allowing FTAI to execute its capital optimization strategy promptly.

NEW YORK, Jan. 17, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI; “FTAI Aviation” or the “Company”) announced today that it will redeem all of the Company’s outstanding 4,940,000 8.00% Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares (the “Series B Shares”) at a redemption price equal to $25.00 per Series B Share in cash, plus $2,405,404.25 of accumulated and unpaid distributions thereon to, but not including, the redemption date of February 16, 2025 (the “Redemption”). The Series B Shares trade under the ticker symbol “FTAIO.”

A Notice of Full Redemption for the Series B Shares describing the Redemption procedures was sent to holders of the Series B Shares on January 17, 2025. Additional information related to the Redemption procedures, including copies of the Notice of Full Redemption, may be obtained from Equiniti Trust Company, LLC by calling 718-921-8317.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

ABOUT FTAI AVIATION

FTAI owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. FTAI’s propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and maintenance, repair, and operations customer base. Additionally, FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the Redemption. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Company’s control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Company’s website (www.ftaiaviation.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based.

Source: FTAI Aviation Ltd.
Alan Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
aandreini@ftaiaviation.com

FAQ

What is the redemption price for FTAI Aviation's Series B Preferred Shares?

FTAI Aviation will redeem the Series B Preferred Shares at $25.00 per share in cash, plus accumulated and unpaid distributions of $2,405,404.25.

When will FTAI Aviation's Series B Preferred Shares be redeemed?

The redemption date is set for February 16, 2025.

How many Series B Preferred Shares is FTAI Aviation redeeming?

FTAI Aviation is redeeming all 4,940,000 outstanding 8.00% Fixed-to-Floating Rate Series B Cumulative Perpetual Redeemable Preferred Shares.

What is the ticker symbol for FTAI Aviation's Series B Preferred Shares?

The Series B Preferred Shares trade under the ticker symbol 'FTAIO.'

How can FTAI shareholders get information about the redemption procedures?

Shareholders can contact Equiniti Trust Company, by calling 718-921-8317 for information about redemption procedures.