DUBLIN, Nov. 15, 2013 /PRNewswire/ -- FLY Leasing Limited (NYSE: FLY), a global lessor of modern commercial jet aircraft, today announced that it has entered into an agreement to amend and extend its BOS Facility, a limited recourse debt facility. At September 30, 2013, the facility had a balance of $209 million secured by nine aircraft.
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.
In connection with the transaction, the lenders will extinguish approximately $35 million of debt and FLY will contribute approximately $20 million of unrestricted cash to repay debt. The new facility will have a balance at closing of approximately $127 million. The interest rate on the amended facility will be LIBOR plus 2.5%, a reduction from the interest rate on the current facility.
"This transaction will produce up-front gains, reduce our leverage, extend our debt maturities and reduce our annual interest costs," said Colm Barrington, CEO of FLY. "This transaction is further evidence of FLY's attractive capital structure and of our active management of FLY's liabilities."
The amendment is expected to close on or about November 19, 2013, subject to customary closing conditions. As a result of the amendment, FLY anticipates recognizing a gain on debt extinguishment of more than $20 million in the fourth quarter of 2013. FLY also anticipates that it will recognize a further gain on debt extinguishment of more than $3 million when the remaining two aircraft are sold, which is expected to be in the first quarter of 2014.
FLY acquires and leases modern, high-demand and fuel-efficient commercial jet aircraft under multi-year operating lease contracts to a diverse group of airlines throughout the world. FLY is managed and serviced by BBAM LP, one of the world's leading aircraft lease managers with more than 20 years of experience. For more information, please visit www.flyleasing.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the FLY's plans, objectives, expectations and intentions. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks. These factors include, but are not limited to those described under ''Risk Factors'' beginning on page S-9 of the prospectus supplement and the information described under ''Risk Factors'' under the heading ''Item 3. Key Information'' beginning on page 4 of FLY's Annual Report on Form 20-F for the fiscal year ended December 31, 2012, which is incorporated in the prospectus supplement by reference, and any risk factors included or described in FLY's other periodic reports, and in other information filed with the SEC, from time to time, and incorporated by reference into the prospectus supplement. Should one or more of these risks or uncertainties materialize, or should any of FLY's assumptions prove incorrect, FLY's actual results may vary in material respects from those projected in these forward-looking statements. FLY expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise.
Matt Dallas FLY Leasing Limited +1 203-769-5916 email@example.com
SOURCE FLY Leasing Limited