Fly Leasing — Goldman Sachs Aircraft Leasing Conference 2012
17 slides from Fly Leasing's conference presentation, Dec 6, 2012
Slide 1: FLY Leasing Limited Goldman Sachs Aircraft Leasing Conference
FLY Leasing Limited Goldman Sachs Aircraft Leasing ConferenceNew York6 December 2012
Slide 2: Caution Concerning Forward-Looking Statements
Caution Concerning Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "s
Slide 3: FLY Overview
FLY Leasing Limited ("FLY") - a leading global lessor of commercial aircraftCompleted NYSE IPO in October 2007 (NYSE:FLY), headquartered in Dublin, IrelandFleet of 110 aircraft on lease to 53 airlines in 29 countriesLow risk model - popular aircraft, diversified lessees, long term financing arrangem
Slide 4: FLY & BBAM at a Glance
Aircraft Portfolio 110 Aircraft (1)89% Narrowbody (2) Aircraft Age 9.2 Years (1) (weighted average by NBV) Customers 53 Airlines in 29 Countries (1) Remaining Lease Term 3.1 Years (1) (weighted average by NBV) Aligned Interest BBAM Principals and Onex Corporation together own ~11.4% of FLY Manager S
Slide 5: Onex to Acquire 50% of BBAM and Invest in FLY
Onex to Acquire 50% of BBAM and Invest in FLY Overview of TransactionsOnex has agreed to buy 50% of BBAM for $165mIncludes FLY's 15% of BBAMOnex has also agreed to buy ~1.75 million FLY shares for $20mBBAM's principals have agreed to buy ~438,000 FLY shares for $5m Independent directors have approve
Slide 6: Summary of Pro-forma Ownership Structures
Summary of Pro-forma Ownership Structures(1) FLY BBAM (1) Transactions anticipated to close by December 31, 2012 subject to customary conditions and receipt of regulatory and other approvals. BBAM Management Onex Public Shareholders 5.1% 6.3% 88.6% BBAM Management Onex 50% 50%
Slide 7: FLY's Attractive Portfolio of Leased Aircraft
Diversified Lessees- 53 Airlines (4) Top 10 Lessees by Contracted Revenue (1) (4) Footnotes:Data as of September 30, 2012.Each includes one freighter.One A330-200, one A340-300, two A340-600s, one B747-400 and one B767-300ER.Based on annual contracted rent. Modern Fleet-9.2 Yr Average Age (1) Modern
Slide 8: Debt facilities at September 30, 2012
Facility Balance at September 30, 2012 (1) No. of Aircraft Effective Cost of Debt (2) Final Maturity Securitization $666m 37 4.13% November 2033 NordLB Facility $552m 19 4.09% November 2018 BOS Facility $310m (3) 11 (4) 4.85% 2013-2017 (5) A&L Facility $43m 6 5.81% 2017 (5) Other Facilities $244m 14
Slide 9: FLY's Core Business Principles
FLY's Core Business Principles Corporate StrategyProvide secure and attractive returns by growing profitability and cash flowMaximize the benefits of association with BBAM - scope, scale and predictable costsManage liabilities using long-term, secured financing Limiting refinancing and covenant risk
Slide 10: FLY's Near-Term Fleet Growth Strategy
FLY's Near-Term Fleet Growth Strategy FLY recently closed $250m acquisition facility - two year revolving, three year termNext two years will be a good time to buy aircraftBank debt is scarce for airlinesExport credit finance is more expensive and terms are more restrictiveSale and leaseback financi
Slide 11: Modern Fleet Generating Strong Cash Flow
Modern Fleet Generating Strong Cash Flow Fuel-efficient, high demand narrow body aircraft Predictable income from leases with a 3.1 year average remaining term Diversified customer base by geography and lessee Attractive Long-Term Debt In 2012, refinanced close-in debt maturities through $1bn transa
Slide 12: Appendix 1 - Term Loan Collateral Overview
Appendix 1-Term Loan Collateral Overview
Slide 13: Term Loan Collateral Overview
The Secured Term Loan will be secured by first priority perfected liens on the 23 aircraft portfolio and related leases, and pledges of the equity interests in the Borrower, each of the Lessor Subsidiaries and each of the Intermediate Lessees The collateral pool has a half life adjusted base value o
Slide 14: Collateral Breakdown by Aircraft
Aircraft Manufacturer Aircraft Type (2) Aircraft Model Aircraft Age In Years Collateral Breakdown (1) Weighted by LMM appraised base value as of November 30, 2012.Sum may not equal to 100% due to rounding.
Slide 15: Collateral Breakdown by Lessee
Lessee (2) Remaining Lease Term (2) Country of Lessee (2) Cape Town / Non-Cape Town (2) Collateral Breakdown (1) (cont'd) Weighted by LMM appraised base value as of November 30, 2012.Includes the lease to Enter Air which is expected to begin December 2012.
Slide 16: Appendix 2 - Adjusted Net Income Definition
Appendix 2-Adjusted Net Income Definition
Slide 17: Appendix - Adjusted Net Income
Appendix 2 - Adjusted Net Income FLY defines Adjusted Net Income as net income plus or minus the ineffective portion of cash flow hedges, aircraft impairment, non-cash share-based compensation and adjustments related to the GAAM portfolio acquisition comprised of amortization of fair value adjustmen
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