Lease Investment Flight Trust extends solicitation for notes series

By Jennifer Chiou

New York, Oct. 17 - Lease Investment Flight Trust announced that it has pushed back the expiration of its consent solicitation for its subclass A-l notes, subclass A-2 notes, subclass A-3 notes, subclass B-1 notes, subclass B-2 notes, subclass C-1 notes, subclass C-2 notes, subclass D-1 notes and subclass D-2 notes.

The deadline is now 5 p.m. ET on Nov. 16, extended from Oct. 17.

The solicitation kicked off on Sept. 15, affecting $955,531,920.81 of outstanding notes overall.

The special-purpose Delaware business trust is seeking consents from holders of at least a majority of the notes to amend the indentures to allow the following:

• The sale or disposal of aircraft based upon a controlling trustees' resolution without having to comply with the current restrictions on such sales and dispositions;

• The controlling trustees to set, from time to time, the concentration limits and permitted countries for lessees without having to comply with the current geographical, lessee and other restrictions;

• Reduction of the cost of hull and other insurance to be at least equal to 100% of the adjusted base value of the aircraft rather than the current note target prices, which reflect both such adjusted base value and the outstanding balance of the notes;

• Elimination of the requirement that the trust obtain rating agency confirmations prior to taking certain actions under the indenture;

• Permission for the company to establish reserves for expenses anticipated to be incurred during the next three months and provide it with the flexibility to incur certain hedging expenses during the period between payment dates;

• Reduction of the senior notes blockage amount to $28 million from $33 million and provide that the amount may only be modified in the future by the controlling trustees; and

• The amendment of the definition of rating agency to limit it to Standard & Poor's and Moody's Investors Service, Inc.

The overall purpose of the proposed amendments, according to a prior news release, is to provide Lease Investment with greater flexibility to, among other things, take advantage of market opportunities to sell aircraft.

Jefferies & Co., Inc. is the solicitation agent (203 363-8285; attn: Evan Wallach at ewallach@jefferies.com or 203 363-8286; James Palen at jpalen@jefferies.com).

The tabulation agent and information agent is Global Restructuring Services, Inc. (212 644-1772; attn: John Baxter at jbaxter@grserve.com).

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