Carlyle Aviation to acquire Fly Leasing

Fly Leasing (FLY) a global leader in aircraft leasing, has entered into a definitive agreement to be acquired by an affiliate of Carlyle Aviation Partners (Carlyle Aviation), the commercial aviation investment and servicing arm within The Carlyle Group’s US$56 billion Global Credit platform.  Under the terms of the Merger Agreement, FLY shareholders will receive US$17.05 per share in cash, representing a total equity valuation of approximately US$520 million. The total enterprise value of the transaction is approximately US$2.36 billion. FLY’s portfolio of 84 aircraft and seven engines is on lease to 37 airlines in 22 countries.

“This transaction represents strong value for FLY shareholders at a time when airlines are facing an extremely difficult environment and smaller aircraft lessors are disadvantaged in the debt markets,” said Colm Barrington, CEO of FLY. “After a thorough review and evaluation of its options, FLY’s Board of Directors enthusiastically recommends this transaction to its shareholders.”

The per-share cash consideration represents a premium of approximately 29% to FLY’s closing price on March 26, 2021 and a 43% premium to the volume-weighted average share price during the last 30 trading days. 

The Board of Directors of FLY has approved the Merger Agreement, acting upon the recommendation of a special committee appointed by the Board of Directors and consisting solely of independent and disinterested directors, and has recommended that FLY shareholders vote in favor of the transaction.

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.  Given the pending transaction, FLY will not host a first-quarter earnings call.