Fly Leasing to return $100m to shareholders
Fly Leasing, the Dublin-based aircraft leasing firm that’s headed by former Aer Lingus chairman Colm Barrington, is set to return $100m (€93m) to its shareholders after reporting strong third quarter results.
The company said today that it will return the money to shareholders after agreeing to sell 57 older aircraft from its fleet.
It will return the money to shareholders via three methods. It’s making $75m available for a modified Dutch auction tender offer. Another $25m will be used for an open market repurchase programme, and $10m in additional open market purchases will be made by BBAM shareholders.
Fly Leasing is listed on the New York Stock Exchange.
A wholly-owned subsidiary of BBAM provides management services to Fly Leasing. BBAM is the world’s third-largest aircraft leasing company and was formerly known as Babcock and Brown Aircraft Management. A management buyout of the business took place in 2010.
A Dutch auction sees shareholders tender their shares for sale to the company, indicating the price, within a given rage, that they would like to receive for them. When all tenders have been received, the purchase price for all tendered shares accepted for payment is the lowest price per share from among the specified offer range at which the shares have been tendered and which will enable the company to buy back the maximum number of shares.
“Our aircraft sales have generated significant levels of investible cash, enabling us to simultaneously invest in newer, higher yielding aircraft and accelerate the return of capital to our shareholders,” said Mr Barrington. “With our younger fleet, the financial firepower to carry out our growth strategy and our new initiatives, Fly will continue to grow the value of the business for our shareholders.”
Fly Leasing reported adjusted net income of $32.3m in the third quarter. Its shares were trading down slightly in New York this morning.