FLY Leasing amends and extends BOS debt facility

By Toni Weeks

San Luis Obispo, Calif., Nov. 15 - FLY Leasing Ltd. said it amended and extended its BOS facility. The limited recourse debt facility had a balance of $209 million secured by nine aircraft as of Sept. 30, according to a press release.

The amended facility will provide loans to FLY subsidiaries secured by seven aircraft, with six loans maturing in seven years and one in six years. The facility will be guaranteed by FLY. The two remaining aircraft are expected to be sold in the first quarter of 2014.

Borrowings will bear interest at Libor plus 250 basis points, a reduction from the current facility's interest rate.

In connection with the transaction, lenders will extinguish roughly $35 million of debt, and FLY will use about $20 million of unrestricted cash for debt repayment. The new facility will have a balance of about $127 million at closing, which is expected to occur on Nov. 19.

"This transaction will produce up-front gains, reduce our leverage, extend our debt maturities and reduce our annual interest costs," chief executive officer Colm Barrington said in the release.

As a result of the amendment, FLY said it will recognize a gain on debt extinguishment of more than $20 million in the fourth quarter of 2013 and a further gain on debt extinguishment of more than $3 million when the remaining two aircraft are sold.

FLY Leasing is a Dublin-based aircraft lessor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.