FTAI Aviation Announces Strategic Capital Initiative and Aircraft Sale Agreement

FTAI Aviation Ltd. recently disclosed in a Form 8-K filing with the Securities and Exchange Commission that subsidiary entities of the Company have entered into significant agreements, marking a strategic move in the aviation sector.

The Aircraft Sale and Purchase Agreement involves the sale of legal title to specific aircraft and a Beneficial Interest Sale and Purchase Agreement involving the sale of the beneficial interest in certain aircraft owner trusts. The agreements encompass 46 on-lease 737NG and A320ceo aircraft, valued at an aggregate net purchase price of around $549 million, with completion expected by the second quarter of 2025.

This transaction signifies a pivotal shift for FTAI, which had 41 of the aircraft as of September 30, 2024, and acquired five additional units in the fourth quarter of the same year. The Company has provided a limited guaranty concerning the obligations of its selling subsidiaries within the agreements.

Concurrent with the 2025 Aircraft Sale, FTAI Aviation is embarking on a strategic capital initiative in collaboration with third-party institutional investors. The initial partnership under this initiative, known as the “2025 Partnership,” plans to acquire on-lease 737NG and A320ceo aircraft. The Company has committed to offering aircraft management services to the partnership and also investing as a minority stakeholder.

Moreover, FTAI will exclusively supply CFM56 and V2500 engines to the 2025 Partnership under Maintenance, Repair, and Exchange (MRE) agreements, with a recent agreement signed regarding CFM56 engines. The long-term arrangement includes engine and module exchanges at contractual rates.

A separate press release issued concurrently with the filing outlined FTAI’s estimate of achieving 2025 Adjusted EBITDA in the range of approximately $1.1 to $1.15 billion from its reportable segments. This includes a substantial contribution from the Aviation Leasing segment and Aerospace Products segment.

As with any forward-looking statement, investors should note the intrinsic uncertainties presented by such announcements. The Company emphasizes that the execution of these strategic moves is subject to various risks and operational conditions, detailed in its periodic reports filed with the SEC.

For more information, the press release and further details can be found in the Exhibit 99.1 attached to the Form 8-K filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FTAI Aviation’s 8K filing here.

About FTAI Aviation

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers.