Babcock & Brown Air Limited will be partnering with the current management team of Babcock & Brown Aircraft Management to invest in BBAM LP, a newly formed, privately-held aircraft leasing and management business. B&B Air has agreed to purchase a 15% interest in the new business which will provide management services to B&B Air and will service B&B Air’s portfolio. At closing, the remaining 85% interest in the new business will be owned by the current management team of Babcock & Brown Aircraft Management. From the commencement of its operations, BBAM LP will be one of the world’s leading aircraft leasing and management companies.
In a related transaction, B&B Air has also entered into an agreement to repurchase 2,011,264 B&B Air shares from Babcock & Brown Limited (“B&B”) at a price of $8.78 per share. These repurchased shares represent approximately 6.6% of B&B Air’s outstanding shares as of December 31, 2009.
