The global aviation landscape witnessed a significant shift as Carlyle Aviation Partners, a prominent name in aviation investment and servicing, officially completed its acquisition of Fly Leasing Limited. This strategic move, announced on August 2, 2021, marks a pivotal moment for both entities and underscores Carlyle Aviation Partners’ commitment to strengthening its position in the competitive aircraft leasing market. This article delves into the details of this acquisition, exploring its implications and what it signifies for the future of Carlyle Aviation Partners and the broader aviation industry.
Acquisition Completion: A New Chapter for Fly Leasing
The merger agreement, which received the green light from all necessary government regulatory bodies and Fly Leasing’s shareholders, culminated in Carlyle Aviation Partners, utilizing funds from its fifth aviation fund, SASOF V, taking ownership of FLY. For Fly Leasing shareholders, the agreement translated to a cash payout of $17.05 per share. This acquisition effectively privatized Fly Leasing, delisting it from the New York Stock Exchange (NYSE) and bringing an end to its public trading under the ticker FLY. The delisting process commenced with a request to suspend trading on August 3, 2021, followed by the formal notification to the U.S. Securities and Exchange Commission (SEC) via Form 25. Fly Leasing also initiated the process to terminate its reporting obligations under the Securities Exchange Act of 1934, signaling its transition into a privately held entity under the Carlyle umbrella.
Strategic Debt Restructuring: The Exchange Offer and Consent Solicitation
Concurrent with the merger, Carlyle Aviation Partners executed a strategic financial maneuver by launching an exchange offer for Fly Leasing’s 5.250% senior notes due in 2024. This offer aimed to exchange these existing notes (referred to as “Old Notes”) for newly issued 7.000% senior notes due in 2024 (“New Notes”). The exchange offer was accompanied by a consent solicitation to amend certain terms of the indenture governing the Old Notes. The results of this exchange offer demonstrated strong investor confidence, with a remarkable 97% of the outstanding principal amount of Old Notes being validly tendered for exchange. This high participation rate not only satisfied the “Minimum Issue Condition” requiring at least $150 million in New Notes to be issued but also ensured the successful implementation of the proposed amendments and waivers to the original indenture. The successful completion of this exchange offer and consent solicitation streamlines Fly Leasing’s debt structure under Carlyle’s ownership, paving the way for future financial flexibility.
Carlyle Aviation Partners: Expanding Influence in Aviation Investment
Carlyle Aviation Partners operates as the specialized commercial aviation investment and servicing division within Carlyle’s expansive $61 billion Global Credit platform. This acquisition of Fly Leasing is a testament to Carlyle Aviation Partners’ strategic vision to solidify its standing as a leading multi-strategy aviation investment manager. By integrating Fly Leasing’s portfolio of modern, fuel-efficient commercial jet aircraft, Carlyle Aviation Partners significantly broadens its asset base and strengthens its capacity to cater to a diverse global clientele of airlines. Fly Leasing’s established history as a global aircraft leasing company, with aircraft leased to numerous airlines worldwide under multi-year operating lease contracts, complements Carlyle Aviation Partners’ existing strengths. This synergy creates a more robust and diversified platform, enhancing Carlyle Aviation Partners’ ability to navigate the complexities of the aviation market and capitalize on emerging opportunities.
Carlyle Aviation Partners leverages its deep technical knowledge, extensive industry expertise, and established presence within the aviation sector to drive value and generate returns for its investors. With a global team exceeding 90 professionals located across offices in the US, Ireland, and Singapore, Carlyle Aviation Partners is well-equipped to manage a growing portfolio and deliver comprehensive aviation investment solutions. The acquisition of Fly Leasing further amplifies Carlyle Aviation Partners’ capabilities and reach, reinforcing its position as a key player in shaping the future of aviation finance and leasing.
Conclusion: A Powerhouse in Aviation Leasing Emerges
The successful acquisition of Fly Leasing by Carlyle Aviation Partners represents a strategic alignment of strengths, creating a more formidable entity in the global aviation leasing arena. For Carlyle Aviation Partners, this merger signifies portfolio expansion, enhanced market presence, and reinforced expertise within the sector. As Fly Leasing transitions into a new chapter under private ownership, the aviation industry anticipates the combined entity’s impact on aircraft leasing, investment strategies, and overall market dynamics. This acquisition underscores the continued evolution and consolidation within the aviation finance landscape, with Carlyle Aviation Partners positioned at the forefront of these transformative shifts.
