Market Overview

FLY Leasing Limited Reprices $395M Term Loan


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."

Posted-In: News Financing


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