FLY Leasing closes new $331.77 million eight-year term loan facility

By Sarah Lizee

Olympia, Wash., Dec. 11 – FLY Leasing Ltd., through a wholly owned subsidiary, closed on Friday a new $331,767,500 eight-year term loan facility, according to a 6-K filed with the Securities and Exchange Commission.

The facility matures on Dec. 8, 2025 and will bear interest at one-month Libor plus 165 basis points. The interest rate on notes issued under the facility is a fixed rate of 3.93% per year.

MUFG is the administrative agent for the facility.

Proceeds will be used to finance nine aircraft with an initial loan-to-value ratio of less than or equal to 75%.

The facility contains certain covenants, including a covenant that the company maintain a tangible net worth of at least $325 million.

In addition, if the company fails to maintain a minimum liquidity of at least $25 million, the company will be required to deposit certain amounts of maintenance reserves and security deposits received into accounts pledged to the security trustee.

Upon the sale of an aircraft, the borrower may substitute aircraft into the facility subject to conditions. The substitute aircraft must be equal to or greater than the appraised value of the aircraft being substituted.

FLY paid an upfront fee of about $3 million to the lenders concurrent with the closing.

The lender syndicate is comprised of nine institutions, including five first-time lenders to FLY.

“This term loan facility has one of the most competitive borrowing costs in the industry, demonstrating that FLY continues to be an attractive counterparty for a broad group of lenders,” Colm Barrington, chief executive officer, said in a press release.

“The eight-year term is in line with our philosophy of matching our financing terms with our lease term profile.”

FLY is a Dublin-based aircraft lessor.

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