FTAI Aviation is seeking to raise $1 billion through a private offering of senior notes due 2034. The financing is intended to refinance borrowings tied to the company’s accelerated share repurchase program and to retire part of its 2028 debt.
The offering remains subject to market and other conditions. FTAI has not specified the notes’ interest rate or how much of the 2028 notes it plans to redeem.
- Use of proceeds: FTAI Aviation Investors, a subsidiary, intends to use part of the proceeds to repay all amounts outstanding under its revolving credit facility. Those borrowings funded FTAI Aviation’s accelerated share repurchase program.
- Revolver availability: The company plans to repay the balance without reducing the facility’s commitments, leaving the revolving credit line in place.
- 2028 debt: Some proceeds are also intended to redeem a portion of the subsidiary’s 5.50% senior notes due 2028. The amount to be redeemed was not specified.
- Guarantees: FTAI Aviation and certain subsidiaries are expected to guarantee the new notes on a senior unsecured basis.
- Offering format: The notes are being offered privately to qualifying institutional buyers in the United States and to investors outside the United States.
The plan would replace some current borrowings and part of the 2028 debt with obligations due in 2034, while retaining the revolving credit facility’s commitments. The announcement does not provide enough detail to assess the new notes’ pricing or the full effect on interest expense.