Press release
FTAI's Strategic Capital Initiative Secures Commitment for $2.5 Billion of Asset-Level Debt Financing
Financing to be Used to Fund Acquisitions of On-Lease 737NG and A320ceo Aircraft NEW YORK, Feb. 26, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI)
About this update from Ftai Aviation Ltd.
[{"type":"text","content":"Financing to be Used to Fund Acquisitions of On-Lease 737NG and A320ceo Aircraft\nNEW YORK, Feb. 26, 2025 (GLOBE NEWSWIRE) -- FTAI Aviation Ltd. (NASDAQ: FTAI) (“FTAI” or the “Company”) today announced its Strategic Capital Initiative (“SCI”) has obtained a commitment for $2.5 billion of asset-level debt financing led by global investment firm ATLAS SP Partners (“ATLAS SP”), the structured products business majority owned by Apollo funds, and Deutsche Bank AG, New York Branch. FTAI believes this debt financing will provide the SCI the ability to deploy $4.0+ billion of total capital into on-lease 737NG and A320ceo aircraft while allowing FTAI to maintain an asset-light business model. All engines owned by the SCI will be powered exclusively via engine and module exchanges with FTAI’s Maintenance, Repair and Exchange (“MRE”) business. “We are thrilled that our Strategic Capital Initiative has secured this financing commitment,” said Joseph P. Adams, CEO and Chairman of FTAI. “We believe this will allow the SCI to be one of the largest investors focused on mid-life, on-lease aircraft and we are grateful for the support of SCI capital partners and lenders, whose confidence in our business affirms and amplifies our strong momentum.” Mr. Adams continued, “This is an exciting time for FTAI as our MRE offering continues to penetrate the market and transform the way asset owners think about engine maintenance. With a $22 billion total addressable market and only 5% market share today*, we believe we are in the early innings of growth for our Aerospace Products business. We are also grateful for our growing customer base, and we look forward to driving cost and time savings for more asset owners with our differentiated Maintenance, Repair and Exchange services.” John Zito, Co-President of Apollo Asset Management said, “We are excited for ATLAS SP to support FTAI’s Strategic Capital Initiative in its inaugural asset-level debt financing. We believe this financing provides ATLAS SP clients with compelling, risk-adjusted returns, and demonstrates our continued leadership in leading inaugural issuances and financings for our clients. We are pleased to be partnering with the FTAI Strategic Capital Initiative team and their differentiated platform. Carey Lathrop, CEO of ATLAS SP continued, “We are honored to have served as structuring agent an...