FLY launches repricing of $390 million loan at Libor plus 450-475 bps

By Sara Rosenberg

New York, Dec. 3 - FLY Leasing Ltd. held a call on Monday afternoon to launch a repricing of its roughly $390 million term loan, according to a market source.

Under the proposal, pricing on the loan is being talked at Libor plus 450 basis points to 475 bps, down from Libor plus 550 bps currently, the source said.

The 1.25% Libor floor is being left unchanged.

The repriced loan is being offered at par and includes 101 soft call protection for one year.

Citigroup Global Markets Inc. is the lead bank on the deal.

Commitments are due on Dec. 12, the source added.

FLY is facing a credit positive event in which it will get about $75 million of new capital, the source remarked.

Onex Corp. has agreed to acquire a 50% stake in BBAM Ltd., which manages FLY's portfolio and of which FLY owns 15%.

As part of the deal, FLY's 15% stake is being acquired and a $25 million equity investment is being made in FLY, which is how the company is getting the roughly $75 million of capital, the source explained.

FLY is an aircraft lessor with corporate offices in Dublin, Ireland, and San Francisco.

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