Global lessor FLY Leasing has announced the further re-pricing of its 2012 Term Loan. The interest rate on the amended loan will be LIBOR plus 3.50%, a 1.00% reduction from the previous interest rate. In addition, the LIBOR floor has been reduced to 1.00%, a reduction of 0.25%.
“This is the second re-pricing of our 2012 Term Loan, demonstrating our active approach to managing our capital structure. The transaction will lower FLY’s overall cost of funding, which has been steadily decreasing over the last two years. Lender support for this transaction is a testimony to FLY’s positive operating and financial performance as well as a reflection of the continuing strength of the aircraft leasing sector,” said Colm Barrington, CEO of FLY.
In conjunction with the re-pricing, FLY will pay its current Term Loan lenders a one-time prepayment fee of 1.00% of the current outstanding principal of $380 million. The transaction is anticipated to close before the end of May 2013, subject to customary closing conditions.