FLY Leasing saves money with loan amendments

FLY Leasing will save millions, after agreeing to repricing amendments to its 2012 $400 million term loan.

The interest rate on the amended facility will be LIBOR plus 2.25%, a 0.50% reduction from the previous margin, and the LIBOR floor of 0.75% was eliminated. This will allow the aircraft lessor to save about $2.5 million in interest expense annually, according to Colm Barrington, chief executive of FLY.

The loan, which will now be due in 2023 instead of 2022, has been upsized by $50 million to refinance four aircraft currently financed under FLY’s CBA Facility, which had $54.4 million with a weighted average interest rate of 5.47%. That loan, which was assumed in connection with the acquisition of a portfolio of aircraft from GAAM, was due in 2018.

“FLY continues to manage its liability structure opportunistically to drive higher returns while de-risking its financial position,” says Barrington.

Source: Cirium Dashboard