FTAI Aviation Ltd. has just announced the commencement of a cash tender offer for any and all of its outstanding 6.50% senior notes due 2025. The offer, which is set to expire at 5:00 p.m., New York City time, on April 8, 2024, unless extended or terminated by FTAI LLC, is offering $1,000 per $1,000 principal amount of notes validly tendered.
The company has made it clear that the tender offer is not conditioned on the tender of any minimum principal amount of 2025 senior notes. However, it is subject to and conditioned upon the satisfaction or waiver of certain conditions, including a condition that FTAI LLC raises gross proceeds from the issuance of a new series of senior notes in an amount satisfactory to the company in its sole discretion. FTAI LLC intends to fund the purchase of the 2025 senior notes through the net proceeds from such debt financing.
For the holders who deliver a notice of guaranteed delivery and all other required documentation at or prior to the expiration date, the deadline to validly tender 2025 senior notes using the guaranteed delivery procedures will be the second business day after the expiration date, expected to be 5:00 p.m., New York City time, on April 10, 2024.
FTAI LLC has also appointed Morgan Stanley & Co. LLC as the sole dealer manager for the tender offer, and D.F. King & Co., Inc. to serve as the tender and information agent for the tender offer.
FTAI Aviation Ltd. is a company that owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. Its proprietary portfolio of products, including the module factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to its airline, lessor, and maintenance, repair, and operations customer base. Additionally, the company owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation. Following these announcements, the company's shares moved -1.8%, and are now trading at a price of $66.57. If you want to know more, read the company's complete 8-K report here.
