Press release from PR Newswire
FLY Leasing Re-Prices $395 Million Term Loan
Thursday, December 13, 2012
DUBLIN, Dec. 13, 2012 /PRNewswire/ -- FLY Leasing Limited (NYSE: FLY) ("FLY"), a global lessor of modern commercial jet aircraft, today announced that it has re-priced its $395 million Term Loan. The interest rate on the amended loan will be LIBOR plus 4.50%, a 1.00% reduction from the previous interest rate of LIBOR plus 5.50%. In conjunction with the re-pricing, FLY Leasing will pay its current Term Loan lenders a one-time prepayment fee of 1.00% of the outstanding principal amount of $390 million. The economic terms of the Term Loan are otherwise unchanged.
"This transaction is a testimony to FLY's ability to capitalize quickly on improving market conditions and reflects the positive impact of the recently announced Onex transactions," said Colm Barrington, CEO of FLY.
"The re-priced loan will likely be considered a new loan under US GAAP," said Gary Dales, CFO of FLY. "As a result, we anticipate a one-time charge in the fourth quarter of approximately $26.3 million, of which $22.4 million is a non-cash write-off of the original issue discount and fees associated with the original loan issuance in August 2012. The re-pricing will positively impact the cash flows and earnings of the company going forward. We anticipate these savings will be approximately $8 million in 2013."
The transaction is anticipated to close before year end, subject to customary closing conditions.
About FLY FLY acquires and leases modern, high-demand and fuel-efficient commercial jet aircraft under multi-year operating lease contracts to a diverse group of airlines throughout the world. FLY is managed and serviced by BBAM LP, one of the world's leading aircraft lease managers with more than 20 years of experience. For more information about FLY, please visit our website at www.flyleasing.com.
Cautionary Statement Regarding Forward-Looking Statements This press release contains certain "forward - looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for FLY's future business and financial performance and the financial and accounting impact of the transaction described herein. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks. FLY expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise.
Matt DallasFLY Leasing Limited+1 email@example.com
SOURCE FLY Leasing Limited