Fly Leasing, a Carlyle-backed global aircraft leasing company, has been authorized to repurchase $50 million of its $390.5 million 7% notes due 2024 in the secondary market and has received a $50 million equity line of credit, according to sources.
“Fly Leasing’s Board has authorized the Company to repurchase the 2024 notes in open market transactions up to $50 million of original face value. The Board has also authorized an equity line of credit of $50 million for Fly from its ultimate parent, which can be drawn upon for general liquidity requirements,” Carlyle said in a statement to Reorg.
The company is in default on $54 million of debt, the Nord LB Facility, which is secured by three aircraft as of June 30, according to sources. The Nord LB Facility is non-recourse to Fly Leasing or any of its affiliates other than borrowers under the Nord LB Facility, therefore the default does not trigger cross-default or acceleration under the company’s other debt facilities, sources said.
Second-quarter adjusted EBITDA was up year over year to $58 million, sources said.
As of June 30, the company had $84.6 million in unrestricted cash, sources said. The company has a fleet of 70 aircraft and seven engines.
Carlyle acquired Fly Leasing in August of last year and exchanged Fly Leasing’s 5.25% senior notes due 2024 for newly issued 7% senior notes due 2024, as
reported.
The company did not immediately respond to a request for comment.
--Ellen Schneider, Patrick Fitzgerald, Harvard Zhang