Onex to acquire 50% stake in BBAM for $165m

Onex Corporation has agreed to acquire a 50% interest in BBAM, the world’s third largest manager of commercial jet aircraft, for $165m. The transaction is expected to close by the end of 2012 subject to certain conditions and approvals. Onex will acquire a 35% interest in BBAM from BBAM’s management team and a 15% interest in BBAM from FLY Leasing Limited, a leading global lessor of commercial jet aircraft managed by BBAM with 110 aircraft on long-term operating leases to 53 airlines in 29 countries. Onex and BBAM management will also invest a further $25m in newly issued shares of FLY at $11.41 per share. In total, FLY will receive approximately $75m in pre-tax gross proceeds from the sale of its interest in BBAM and the issuance of new FLY shares.