Fly Leasing, which is in the process of being acquired by Carlyle Aviation, has reported total revenues of $80.9 million for the first quarter (Q1) of 2021, compared to $121.5million in Q1 2020. FLY has posted a net loss of $3.4 million, or $0.11 per share, for Q1 2021, compared to net income of $38.1 million, or$1.24 per share, for the same period in 2020.
“In the quarter, FLY’s revenues and net income were again adversely impacted by the global pandemic,” said Colm Barrington, CEO of FLY. “While we are seeing improvements in some sectors of the global airline industry, particularly in US and Chinese domestic traffic, there are still large parts of the world where COVID-19 is surging and both domestic and international air traffic is at a virtual standstill due to continuing travel restrictions. It now appears likely that it will be well into 2022 before global air traffic returns towards 2019 levels.”
FLY announced on March 29, 2021 that it had entered into a definitive agreement to be acquired by an affiliate of Carlyle Aviation Partners. Under the terms of the Merger Agreement, FLY shareholders will receive $17.05 per share in cash, representing a total equity valuation of approximately $520 million. The total enterprise value of the transaction is approximately $2.36 billion. The transaction is expected to close in the third quarter of 2021 and is subject to customary closing conditions, including applicable regulatory clearance and the approval of FLY’s shareholders.
"The pending acquisition of FLY by an affiliate of Carlyle Aviation Partners is on track and is expected to close in the third quarter,” said Barrington. “We believe that this transaction represents strong value for FLY shareholders with the per share cash consideration representing a premium of nearly 30% to FLY’s closing price on March 26, 2021, the last trading day prior to the merger announcement."
FLY has recognised $5.9 million of costs associated with the pending transaction with Carlyle Aviation.
At March 31, 2021, FLY’s total assets were $3.1 billion, including investment in flight equipment totalling $2.8 billion. Total cash at March 31, 2021 was $151.2 million, of which $117.2 million was unrestricted. At March 31, 2021, FLY's net debt to equity ratio was 2.2x, reduced from 2.3x as of December 31, 2020.
FLY had 84 aircraft and seven engines in its portfolio at the end of March, which are on lease to 36 airlines in 22 countries. The average age of the portfolio, weighted by net book value of each aircraft and engine, was 8.6 years. The average remaining lease term was 4.7 years, also weighted by net book value.