FLY Leasing Sells 33 Aircraft as Part of Fleet Renewal Strategy
DUBLIN, June 22, 2015 /PRNewswire/ -- FLY Leasing Limited (NYSE: FLY) ("FLY"), a global leader in aircraft leasing, today announced it contracted to sell 33 aircraft from its portfolio for a total of $985 million. This represents a $35 million pre-tax gain over approximate net book values as of June 30, 2015. The aircraft will transfer to the new owner over the course of 2015 and pro rata gains will be recognized at time of transfer of each aircraft. The sale is subject to customary closing conditions.
"The sale is a milestone in our ongoing fleet rejuvenation plan, producing approximately $425 million in unrestricted cash to invest in newer aircraft," said Colm Barrington, CEO of FLY. "The sale substantially reduces financial leverage, decreases exposure to some of our larger lessees and eliminates legacy accounting issues that have negatively impacted FLY's GAAP results. Combined with the previously announced 2015 dispositions, the number of aircraft 10+ years of age in FLY's fleet will decrease from 61 to 33. We believe these factors will help FLY increase return on equity."
In connection with the transaction, FLY's management will host a conference call on Monday, June 22, 2015 at 11:00 am Eastern Time. The call can be accessed live by dialing (U.S./Canada) 800-535-7056 or (International) +1 253-237-1145 and referencing code 70615870 at least five minutes before start time, or by visiting FLY's website at http://www.flyleasing.com under "Investor Relations". FLY will post presentation materials for the call under the "Investor Relations" tab on its website.
The webcast replay and presentation materials will be archived in the "Investor Relations" section of FLY's website for one year.
About FLY
FLY is a global aircraft leasing company with a fleet of modern, high-demand and fuel-efficient commercial jet aircraft. FLY leases its aircraft under multi-year operating lease contracts to a diverse group of airlines throughout the world. FLY is managed and serviced by BBAM LP, a worldwide leader in aircraft lease management and financing. For more information, visit www.flyleasing.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains "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," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the proposed portfolio sale, the expected benefits of the transaction and the outlook for Fly Leasing Limited's ("FLY") future business and financial performance. 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, including, without limitation, the possibility that the transaction will not close in a timely fashion, or at all, the risk that the expected benefits of the transaction may not be fully realized, and the risk that business disruption relating to the transaction may be greater than expected. Further information on the factors and risks that may affect FLY's business is included in filings FLY makes with the Securities and Exchange Commission from time to time, including its Annual Report on Form 20-F and Reports on Form 6-K. 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.
Contact:
Matt Dallas
FLY Leasing Limited
+1 203-769-5916
[email protected]
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SOURCE FLY Leasing Limited
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