☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Name of each exchange on which registered | |||
American Depositary Shares | New York Stock Exchange | |||
Common Shares, par value of $0.001 per share | New York Stock Exchange* |
* | Not for trading, but only in connection with the registration of American Depositary Shares representing these shares, pursuant to the requirements of the Securities and Exchange Commission. |
Large accelerated filer ☐ | Accelerated filer ☒ | Non-accelerated filer ☐ |
Emerging growth company ☐ |
U.S. GAAP ☒ | International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ | Other ☐ |
Page | |
PART I | |
3 | |
3 | |
3 | |
26 | |
PART II | |
PART III | |
(Dollars in thousands, except per share data) Years ended | (Dollars in thousands, except per share data) Years ended | |||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||
Statement of income data: | ||||||||||||||||||||||||||||||||||||||||
Operating lease revenue | $ | 346,894 | $ | 313,582 | $ | 429,691 | $ | 406,563 | $ | 351,792 | $ | 399,514 | $ | 346,894 | $ | 313,582 | $ | 429,691 | $ | 406,563 | ||||||||||||||||||||
Gain on sale of aircraft | 3,926 | 27,195 | 28,959 | 14,761 | 5,421 | 13,398 | 3,926 | 27,195 | 28,959 | 14,761 | ||||||||||||||||||||||||||||||
Total revenues | 353,251 | 345,039 | 462,397 | 425,548 | 360,634 | 418,299 | 353,251 | 345,039 | 462,397 | 425,548 | ||||||||||||||||||||||||||||||
Total expenses | 339,321 | 381,428 | 434,200 | 356,673 | 303,560 | 322,650 | 339,321 | 381,428 | 434,200 | 356,673 | ||||||||||||||||||||||||||||||
Net income (loss) | 2,598 | (29,112 | ) | 22,798 | 60,184 | 53,940 | 85,723 | 2,598 | (29,112 | ) | 22,798 | 60,184 | ||||||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 1.42 | $ | 1.55 | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 1.42 | ||||||||||||||||||
Diluted | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 1.42 | $ | 1.55 | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 1.42 | ||||||||||||||||||
Dividends declared and paid per share | $ | — | $ | — | $ | 1.00 | $ | 1.00 | $ | 0.88 | $ | — | $ | — | $ | — | $ | 1.00 | $ | 1.00 |
(Dollars in thousands, except per share data) As of December 31, | (Dollars in thousands, except share data) As of December 31, | |||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||
Balance sheet data: | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 3,595,615 | $ | 3,447,009 | $ | 3,424,480 | $ | 4,218,408 | $ | 3,660,679 | $ | 4,226,472 | $ | 3,595,615 | $ | 3,447,009 | $ | 3,424,480 | $ | 4,218,408 | ||||||||||||||||||||
Total liabilities | 3,051,906 | 2,853,774 | 2,767,516 | 3,462,154 | 2,918,583 | 3,524,362 | 3,051,906 | 2,853,774 | 2,767,516 | 3,462,154 | ||||||||||||||||||||||||||||||
Total shareholders’ equity | 543,709 | 593,235 | 656,964 | 756,254 | 742,096 | 702,110 | 543,709 | 593,235 | 656,964 | 756,254 | ||||||||||||||||||||||||||||||
Number of shares outstanding | 27,983,352 | 32,256,440 | 35,671,400 | 41,432,998 | 41,306,338 | 32,650,019 | 27,983,352 | 32,256,440 | 35,671,400 | 41,432,998 |
· | the particular maintenance, damage and operating history of the airframes and engines; |
· | the number of operators using a type of aircraft or engine; |
· | whether an aircraft or engine is subject to a lease and, if so, whether the lease terms are favorable to the lessor; |
· | the age of our |
· | airworthiness directives and service bulletins; |
· | aircraft noise and emission |
· | any tax, customs, regulatory and other legal requirements that must be satisfied when an aircraft or engine is purchased, sold or |
· | compatibility of our aircraft configurations or specifications with other aircraft owned by operators of that |
· | the availability of spare parts; and |
· | decreases in the creditworthiness of our lessees. |
· | passenger air travel and air cargo demand; |
· | geopolitical and other events, including war, acts of terrorism, civil unrest, outbreaks of epidemic diseases and natural disasters; |
· | airline operating costs, including fuel |
costs, and general economic conditions affecting our lessees’ operations; |
· | governmental regulation, including new airworthiness directives, statutory limits on age of aircraft, and restrictions in certain jurisdictions on the age of aircraft for import, climate change initiatives and environmental regulation, and other factors leading to obsolescence of aircraft models; |
· | tariffs and other restrictions on trade; |
· | interest and foreign exchange rates; |
· | airline restructurings and bankruptcies; |
· | increased supply due to the sale of aircraft portfolios; |
· | availability and cost of credit; |
· | changes in control of, or restructurings of, other aircraft leasing companies; |
· | manufacturer production levels and technological innovation; |
· | new-entrant manufacturers producing additional aircraft models, or existing manufacturers producing new aircraft models, in competition with existing aircraft models; |
· | retirement and obsolescence of aircraft models; |
· | manufacturers merging or exiting the industry or ceasing to produce aircraft or engine types; |
· | accuracy of estimates relating to future supply and demand made by manufacturers and lessees; |
· | reintroduction into service of aircraft or engines previously in storage; and |
· | airport and air traffic control infrastructure constraints. |
· | impair our liquidity by using a significant portion of our available cash or borrowing capacity to finance acquisitions and |
· | significantly increase our interest expense and financial leverage to the extent we incur additional debt to finance acquisitions and |
· | incur or assume unanticipated liabilities, losses or costs associated with the aircraft that we acquire, or investments we may |
· | incur other significant charges, including asset impairment or restructuring |
· | airlines; |
· | aircraft manufacturers; |
· | financial institutions (including those seeking to dispose of repossessed aircraft at distressed prices); |
· | aircraft brokers; |
· | special purpose vehicles formed for the purpose of acquiring, leasing and selling aircraft; and |
· | public and private partnerships, investors and funds, including private equity and hedge funds. |
· | competition; |
· | fare levels; |
· | air cargo rates; |
· | passenger air travel and air cargo demand; |
· | geopolitical and other events, including war, acts of terrorism, civil unrest, outbreaks of epidemic diseases and natural |
· | increases in operating costs, including the availability and cost of jet fuel and labor |
· | labor difficulties; |
· | economic and financial conditions and currency fluctuations in the countries and regions in which the lessee |
· | governmental regulation of, or affecting, the air transportation business, including noise and emissions regulations, climate change initiatives and age |
· | result in a grounding of the aircraft; |
· | cause us to incur costs in restoring the aircraft to an acceptable maintenance condition to re-lease the aircraft; |
· | adversely affect lease terms in the re-lease of the aircraft; and |
· | adversely affect the value of the aircraft. |
· | at least 75% of our independent directors and holders of 75% or more of all of our outstanding common shares (measured by vote) determine by resolution that there has been unsatisfactory performance by our Manager that is materially detrimental to |
· | our Manager materially breaches the management agreement and fails to remedy such breach within 90 days of receiving written notice from us requiring it to do so, or such breach results in liability to us and is attributable to our Manager’s gross negligence, fraud or dishonesty, or willful misconduct in respect of the obligation to apply the standard of |
· | any license, permit or authorization held by the Manager which is necessary for it to perform the services and duties under the management agreement is materially breached, suspended or revoked, or otherwise made subject to conditions which, in the reasonable opinion of our board of directors, would prevent the Manager from performing the services and the situation is not remedied within 90 |
· | BBAM Aviation Services Limited or one of its affiliates ceases to hold (directly or indirectly) more than 50% of the voting equity of, and economic interest in, the |
· | our Manager becomes subject to bankruptcy or insolvency proceedings that are not discharged within 75 days, unless our Manager is withdrawn and replaced within 90 days of the initiation of such bankruptcy or insolvency proceedings with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the management |
· | our Manager voluntarily commences any proceeding or files any petition seeking bankruptcy, insolvency, receivership or similar law, or makes a general assignment for the benefit of its creditors, unless our Manager is withdrawn and replaced within 15 days with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the management |
· | an order is made for the winding up of our Manager, unless our Manager is withdrawn and replaced within 15 days with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the management |
· | Bankruptcy or insolvency of BBAM LP; |
· | BBAM LP ceases to own, directly or indirectly, at least 50% of the |
· | Summit ceases to own, directly or indirectly, at least 33.33% of the partnership interests in BBAM LP; provided that a sale that results in such ownership being at a level below 33.33% shall not constitute a servicer termination event if the sale is to a publicly listed entity or other person with a net worth of at least $100.0 |
· | 50% or more of the Servicer’s key finance and legal team or technical and marketing team cease to be employed by BBAM LP and are not replaced with employees with reasonably comparable experience within 90 |
· | most of the aircraft and related leases in our portfolio secure debt obligations, the terms of which restrict our ability to sell aircraft and require us to use proceeds from sales of aircraft, in part, to repay outstanding debt; |
· | we are required to dedicate a significant portion of our cash flows from operations to debt service payments, thereby reducing the amount of our cash flows available to fund working capital, make capital expenditures and satisfy other |
· | restrictions on our subsidiaries’ ability to distribute excess cash flows to us under certain |
· | lessee, geographical and other concentration requirements limit our flexibility in leasing our |
· | requirements to obtain the consent of third parties including lenders, the insurance policy provider and rating agency confirmations for certain |
· | restrictions on our subsidiaries’ ability to incur additional debt, pay dividends or make other restricted payments, create liens on assets, sell assets, enter into transactions with our affiliates, make freighter conversions and make certain investments or capital |
· | making it more difficult for us to satisfy our debt obligations with respect to the notes and our other |
· | limiting our ability to obtain additional financing to fund the acquisition of aircraft or other aviation assets or for other general corporate |
· | requiring a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for acquisitions of aircraft |
· | increasing our vulnerability to general adverse economic and industry |
· | exposing us to the risk of increased interest rates as certain of our borrowings, including borrowings under our various credit facilities, are at variable rates of |
· | limiting our flexibility in planning for and reacting to changes in the aircraft industry; |
· | placing us at a disadvantage compared to other |
· | increasing our cost of |
Facility (1) | Principal Amount Outstanding at December 31, | Number of Aircraft Financed | Maturity Date | |||||
Securitization Notes(3) | $ | 9 | November 2033 | |||||
Nord LB Facility | $ | |||||||
Fly Aladdin Acquisition Facility | $ | 467.2 million | 24 | June 2020 – June 2023 |
(1) | Excludes |
(2) | Excludes unamortized debt discounts and loan costs. |
(3) | The Securitization Notes will be redeemed at par, plus accrued interest, on March 14, 2019. |
· | announcements concerning our competitors, the airline industry (including the creditworthiness of airlines) or the economy in |
· | announcements concerning the availability of the type of aircraft we |
· | general and industry-specific economic |
· | changes in the price of aircraft |
· | changes in financial estimates or recommendations by securities analysts or failure to meet analysts’ performance |
· | any increased indebtedness we may incur in the |
· | speculation or reports by the press or investment community with respect to us or our industry in |
· | announcements by us or our competitors of significant contracts, acquisitions, dispositions, strategic partnerships, joint ventures or capital |
· | changes or proposed changes in laws or regulations affecting the airline industry or enforcement of these laws and regulations, or announcements relating to these |
· | general market, political and economic conditions, including any such conditions and local conditions in the markets in which our lessees are |
· | provisions that permit us to require any competitor of BBAM LP that acquires beneficial ownership of more than 15% of our common shares either to tender for all of our remaining common shares for no less than their fair market value, or sell such number of common shares to us or to third parties as to reduce its beneficial ownership to less than 15%, in either case within 90 days of our request to so tender or |
· | provisions that reduce the vote of each common share held by a competitor of BBAM LP that beneficially owns 15% or more, but less than 50%, of our common shares to three-tenths of one vote per share on all matters upon which shareholders may |
· | provisions that permit our board of directors to determine the powers, preferences and rights of any preference shares we may issue and to issue any such preference shares without shareholder |
· | advance notice requirements by shareholders for director nominations and actions to be taken at annual |
· | no provision for cumulative voting in the election of directors, such that all the directors standing for election may be elected by our shareholders by a plurality of votes cast at a duly convened annual general meeting, the quorum for which is two or more persons present in person or by proxy at the start of the meeting and representing in excess of 25% of all votes attaching to all shares in issue entitling the holder to vote at the |
Lessee | Aircraft Type | Airframe Type | Date of Manufacture | Aircraft Type | Airframe Type | Date of Manufacture | ||
1. | Aeromexico | B737-700 | Narrow-body | 2006 | Aeromexico | B737-700 | Narrow-body | 2006 |
2. | Aeromexico | B737-700 | Narrow-body | 2005 | Aeromexico | B737-700 | Narrow-body | 2005 |
3. | Aeromexico | B737-700 | Narrow-body | 2005 | Aeromexico | B737-700 | Narrow-body | 2005 |
4. | Air China | B737-800 | Narrow-body | 2007 | Air China | B737-800 | Narrow-body | 2007 |
5. | Air Europa | B787-8 | Wide-body | 2017 | Air Europa | B787-8 | Wide-body | 2017 |
6. | Air India | B787-8 | Wide-body | 2015 | Air India | B787-8 | Wide-body | 2015 |
7. | Air India | B787-8 | Wide-body | 2014 | Air India | B787-8 | Wide-body | 2014 |
8. | Air India | B787-8 | Wide-body | 2014 | Air India | B787-8 | Wide-body | 2014 |
9. | Air Moldova | A319-100 | Narrow-body | 2006 | Air Moldova | A319-100 | Narrow-body | 2006 |
10. | American Airlines | B737-800 | Narrow-body | 2013 | AirAsia Berhad | A320-200 | Narrow-body | 2014 |
11. | American Airlines | A319-100 | Narrow-body | 2000 | AirAsia Berhad | A320-200 | Narrow-body | 2013 |
12. | American Airlines | A319-100 | Narrow-body | 2000 | AirAsia Berhad | A320-200 | Narrow-body | 2013 |
13. | American Airlines | A319-100 | Narrow-body | 2000 | AirAsia Berhad | A320-200 | Narrow-body | 2012 |
14. | American Airlines | A319-100 | Narrow-body | 2000 | AirAsia Berhad | A320-200 | Narrow-body | 2012 |
15. | Chang’An Airlines | B737-800 | Narrow-body | 2006 | AirAsia Berhad | A320-200 | Narrow-body | 2012 |
16. | easyJet | A319-100 | Narrow-body | 2007 | AirAsia Berhad | A320-200 | Narrow-body | 2011 |
17. | easyJet | A319-100 | Narrow-body | 2004 | AirAsia Berhad | A320-200 | Narrow-body | 2011 |
18. | easyJet | A319-100 | Narrow-body | 2004 | AirAsia Berhad | A320-200 | Narrow-body | 2010 |
19. | Ethiopian Airlines | B777-200LRF (1) | Wide-body | 2015 | AirAsia Berhad | A320-200 | Narrow-body | 2010 |
20. | Ethiopian Airlines | B777-200LRF (1) | Wide-body | 2015 | AirAsia Berhad | A320-200 | Narrow-body | 2010 |
21. | Finnair | A320-200 (2) | Narrow-body | 2003 | AirAsia Berhad | A320-200 | Narrow-body | 2010 |
22. | flydubai | B737-800 | Narrow-body | 2010 | AirAsia Berhad | A320-200 | Narrow-body | 2009 |
23. | Frontier | A319-100 | Narrow-body | 2001 | AirAsia India | A320-200 | Narrow-body | 2014 |
24. | Garuda Indonesia | B737-800 | Narrow-body | 2010 | AirAsia India | A320-200 | Narrow-body | 2014 |
25. | Garuda Indonesia | B737-800 | Narrow-body | 2010 | AirAsia India | A320-200 | Narrow-body | 2010 |
26. | Go2Sky | B737-800 | Narrow-body | 1998 | AirAsia India | A320-200 | Narrow-body | 2005 |
27. | Icelandair | B757-200SF (1) | Narrow-body | 1990 | Alaska Airlines | A320-200 | Narrow-body | 2007 |
28. | Israir Airlines | A320-200 | Narrow-body | 2016 | American Airlines | B737-800 | Narrow-body | 2013 |
29. | IZair | B737-800 | Narrow-body | 2007 | American Airlines | A319-100 | Narrow-body | 2000 |
30. | IZair | B737-800 | Narrow-body | 2006 | American Airlines | A319-100 | Narrow-body | 2000 |
31. | Jet Airways | B737-800 | Narrow-body | 2014 | American Airlines | A319-100 | Narrow-body | 2000 |
32. | Jet Airways | B737-800 | Narrow-body | 2014 | American Airlines | A319-100 | Narrow-body | 2000 |
33. | Jet Airways | B737-800 | Narrow-body | 2014 | Chang’An Airlines | B737-800 | Narrow-body | 2006 |
34. | Jet Lite | B737-700 | Narrow-body | 2002 | Eastar Jet Co., Ltd. | B737-800 | Narrow-body | 2010 |
35. | Jetstar Pacific Airlines | A320-200 | Narrow-body | 2005 | easyJet | A319-100 | Narrow-body | 2007 |
36. | LATAM | B787-8 | Wide-body | 2013 | easyJet | A319-100 | Narrow-body | 2004 |
37. | Lucky Air Airlines | B737-800 | Narrow-body | 2007 | easyJet | A319-100 | Narrow-body | 2004 |
38. | Lucky Air Airlines | B737-800 | Narrow-body | 2007 | Ethiopian Airlines | B777-200LRF (1) | Wide-body | 2015 |
39. | Malaysian Airlines | B737-800 | Narrow-body | 2012 | Ethiopian Airlines | B777-200LRF (1) | Wide-body | 2015 |
40. | Malaysian Airlines | B737-800 | Narrow-body | 2011 | Finnair | A320-200(2) | Narrow-body | 2003 |
41. | Malaysian Airlines | B737-800 | Narrow-body | 2011 | Garuda Indonesia | B737-800 | Narrow-body | 2010 |
42. | Nok Airlines | B737-800 | Narrow-body | 2015 | Go2Sky | B737-800 | Narrow-body | 2007 |
43. | Oman Air S.A.O.C. | B737-800 | Narrow-body | 2009 | Go2Sky | B737-800 | Narrow-body | 1998 |
44. | Oman Air S.A.O.C. | B737-800 | Narrow-body | 2009 | Icelandair | B757-200SF (1) | Narrow-body | 1990 |
45. | Philippine Airlines | A321-200 | Narrow-body | 2014 | Indigo | A320-200 | Narrow-body | 2005 |
46. | Philippine Airlines | A321-200 | Narrow-body | 2014 | Indigo | A320-200 | Narrow-body | 2005 |
47. | Philippine Airlines | A330-300 | Wide-body | 2013 | Indonesia AirAsia | A320-200 | Narrow-body | 2013 |
48. | Philippine Airlines | A330-300 | Wide-body | 2013 | Indonesia AirAsia | A320-200 | Narrow-body | 2012 |
49. | PT Lion Mentari | B737-MAX 8 | Narrow-body | 2017 | Indonesia AirAsia | A320-200 | Narrow-body | 2012 |
50. | PT Lion Mentari | B737-MAX 8 | Narrow-body | 2017 | Israir Airlines | A320-200 | Narrow-body | 2016 |
51. | PT. Batik Air Indonesia | A320-200 | Narrow-body | 2017 | Jet Airways | B737-800 | Narrow-body | 2014 |
52. | Shandong Airlines | B737-800 | Narrow-body | 2013 | Jet Airways | B737-800 | Narrow-body | 2014 |
53. | Shandong Airlines | B737-800 | Narrow-body | 2013 | Jet Airways | B737-800 | Narrow-body | 2014 |
54. | Silk Air | A320-200 | Narrow-body | 2004 | Lucky Air Airlines | B737-800 | Narrow-body | 2007 |
55. | Spicejet | B737-800 | Narrow-body | 2010 | Lucky Air Airlines | B737-800 | Narrow-body | 2007 |
56. | Spicejet | B737-800 | Narrow-body | 2010 | Malaysian Airlines | B737-800 | Narrow-body | 2012 |
Lessee | Aircraft Type | Airframe Type | Date of Manufacture | Aircraft Type | Airframe Type | Date of Manufacture | ||
57. | Spicejet | B737-800 | Narrow-body | 2007 | Malaysian Airlines | B737-800 | Narrow-body | 2011 |
58. | Spicejet | B737-800 | Narrow-body | 2007 | Malaysian Airlines | B737-800 | Narrow-body | 2011 |
59. | Spicejet | B737-900ER | Narrow-body | 2007 | Nok Airlines | B737-800 | Narrow-body | 2015 |
60. | Sun Express (Turkey) | B737-800 | Narrow-body | 2007 | Oman Air S.A.O.C. | B737-800 | Narrow-body | 2009 |
61. | Sunwing Airlines | B737-800 | Narrow-body | 2006 | Oman Air S.A.O.C. | B737-800 | Narrow-body | 2009 |
62. | Sunwing Airlines | B737-800 | Narrow-body | 2006 | Pegasus Airlines | B737-800 | Narrow-body | 2007 |
63. | Swift Air | B737-800 | Narrow-body | 2006 | Philippine Airlines | A321-200 | Narrow-body | 2014 |
64. | TAM | A320-200 | Narrow-body | 2006 | Philippine Airlines | A321-200 | Narrow-body | 2014 |
65. | TAROM S.A. | B737-800 | Narrow-body | 2017 | Philippine Airlines | A330-300 | Wide-body | 2013 |
66. | THY | A320-200 | Narrow-body | 2005 | Philippine Airlines | A330-300 | Wide-body | 2013 |
67. | THY | A320-200 | Narrow-body | 2005 | Philippines AirAsia | A320-200 | Narrow-body | 2007 |
68. | THY | A320-200 | Narrow-body | 2005 | PT Batik Air | A320-200 | Narrow-body | 2018 |
69. | Transavia France | B737-800 | Narrow-body | 2008 | PT Batik Air | A320-200 | Narrow-body | 2017 |
70. | Transavia France | B737-800 | Narrow-body | 2008 | PT Lion Mentari | B737-MAX 8 | Narrow-body | 2017 |
71. | Transavia France | B737-800 | Narrow-body | 2007 | PT Lion Mentari | B737-MAX 8 | Narrow-body | 2017 |
72. | Transavia France | B737-800 | Narrow-body | 2007 | Shandong Airlines | B737-800 | Narrow-body | 2013 |
73. | Travel Service | B737-800 | Narrow-body | 2010 | Shandong Airlines | B737-800 | Narrow-body | 2013 |
74. | Travel Service | B737-800 | Narrow-body | 2010 | Smartwings | B737-800 | Narrow-body | 2010 |
75. | TUI Travel Aviation Finance | B737-800 | Narrow-body | 2010 | Spicejet Ltd | B737-800 | Narrow-body | 2010 |
76. | TUI Travel Aviation Finance | B757-200 | Narrow-body | 1999 | Spicejet Ltd | B737-800 | Narrow-body | 2010 |
77. | TUI Travel Aviation Finance | B757-200 | Narrow-body | 1999 | Spicejet Ltd | B737-800 | Narrow-body | 2007 |
78. | Virgin America | A320-200 | Narrow-body | 2007 | Spicejet Ltd | B737-800 | Narrow-body | 2007 |
79. | Virgin Atlantic | A340-600 | Wide-body | 2006 | Spicejet Ltd | B737-900ER | Narrow-body | 2007 |
80. | Virgin Atlantic | A340-600 | Wide-body | 2006 | Sunwing Airlines | B737-800 | Narrow-body | 2006 |
81. | Vueling Airlines | A320-200 | Narrow-body | 2007 | Sunwing Airlines | B737-800 | Narrow-body | 2006 |
82. | Vueling Airlines | A320-200 | Narrow-body | 2007 | Swift Air | B737-800 | Narrow-body | 2006 |
83. | Yakutia | B737-800 | Narrow-body | 2002 | TAROM S.A. | B737-800 | Narrow-body | 2017 |
84. | Off lease | A321-200 | Narrow-body | 2015 | Thai AirAsia | A320-200 | Narrow-body | 2013 |
85. | Off lease (3) | A330-200 | Wide-body | 2001 | Thai AirAsia | A320-200 | Narrow-body | 2012 |
86. | Thai AirAsia | A320-200 | Narrow-body | 2010 | ||||
87. | Thai AirAsia | A320-200 | Narrow-body | 2008 | ||||
88. | Thomas Cook | A321-200 | Narrow-body | 2015 | ||||
89. | Transavia France | B737-800 | Narrow-body | 2008 | ||||
90. | Transavia France | B737-800 | Narrow-body | 2008 | ||||
91. | Transavia France | B737-800 | Narrow-body | 2007 | ||||
92. | Transavia France | B737-800 | Narrow-body | 2007 | ||||
93. | TUI Travel Aviation Finance | B737-800 | Narrow-body | 2010 | ||||
94. | TUI Travel Aviation Finance | B757-200 | Narrow-body | 1999 | ||||
95. | TUI Travel Aviation Finance | B757-200 | Narrow-body | 1999 | ||||
96. | Virgin Atlantic | A340-600 | Wide-body | 2006 | ||||
97. | Virgin Atlantic | A340-600 | Wide-body | 2006 | ||||
98. | Virgin Atlantic | A330-200 | Wide-body | 2001 | ||||
99. | Vueling Airlines | A320-200 | Narrow-body | 2007 | ||||
100. | Vueling Airlines | A320-200 | Narrow-body | 2007 | ||||
101. | Yakutia | B737-800 | Narrow-body | 2002 |
(1) | Freighter. |
(2) | Investment in finance lease. |
Lessee | Aircraft Type | Airframe Type | Date of Manufacture | |
1. | AirAsia Berhad | A320-200 | Narrow-body | 2012 |
2. | AirAsia Berhad | A320-200 | Narrow-body | 2011 |
3. | Garuda Indonesia | B737-800 | Narrow-body | 2010 |
4. | Indonesia AirAsia (1) | A320-200 | Narrow-body | 2012 |
5. | Jetstar Pacific Airlines (1) | A320-200 | Narrow-body | 2005 |
6. | Philippines AirAsia (1) | A320-200 | Narrow-body | 2006 |
7. | Philippines AirAsia (1) | A320-200 | Narrow-body | 2006 |
8. | Smartwings (1) | B737-800 | Narrow-body | 2010 |
9. | Thai AirAsia (1) | A320-200 | Narrow-body | 2010 |
10. | Thai AirAsia (1) | A320-200 | Narrow-body | 2010 |
11. | Thai AirAsia (1) | A320-200 | Narrow-body | 2008 |
12. | THY (1) | A320-200 | Narrow-body | 2005 |
Aircraft was sold subsequent to December 31, 2018 |
Lessee | Engine Type | Date of Manufacture | |
1. | AirAsia Berhad | CFM56-5B4/3 | 2011 |
2. | AirAsia Berhad | CFM56-5B6/3 | 2011 |
3. | AirAsia Berhad | CFM56-5B4/3 | 2008 |
4. | AirAsia Berhad | CFM56-5B6/3 | 2008 |
5. | AirAsia Berhad | CFM56-5B6/P | 2006 |
6. | AirAsia Japan | CFM56-5B6/3 | 2009 |
7. | Indonesia AirAsia | CFM56-5B6/3 | 2015 |
Aircraft Manufacturer | Aircraft Type | Number of Aircraft | |||
Airbus | A319-100 | 8 | |||
A320-200 (1) | 34 | ||||
A321-200 | 3 | ||||
A330-200 | 1 | ||||
A330-300 | 2 | ||||
A340-600 | 2 | ||||
Total | 50 | ||||
Boeing | B737-700 | 3 | |||
B737-MAX 8 | 2 | ||||
B737-800 | 36 | ||||
B737-900ER | 1 | ||||
B757-200 | 2 | ||||
B757-200SF | 1 | ||||
B777-200LRF | 2 | ||||
B787-8 | 4 | ||||
Total | 51 | ||||
Total | 101 |
(1) | Includes an investment in finance lease. |
Airframe Type | Number of Aircraft | |
Narrow-body (1) (2) | ||
Wide-body (3) | ||
Total |
(1) | Includes an investment in finance lease. |
(2) | Includes one freighter. |
(3) | Includes two freighters. |
Years ended | Years ended | |||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||
Europe: | ||||||||||||||||||||||||||||||||||||||||||||||||
United Kingdom | $ | 31,259 | 8 | % | $ | 29,182 | 8 | % | $ | 34,498 | 11 | % | ||||||||||||||||||||||||||||||||||||
Spain | $ | 11,199 | 3 | % | $ | 5,361 | 2 | % | $ | 9,191 | 2 | % | 17,267 | 4 | % | 11,199 | 3 | % | 5,361 | 2 | % | |||||||||||||||||||||||||||
Turkey | 17,103 | 5 | % | 24,593 | 8 | % | 29,847 | 7 | % | 12,114 | 3 | % | 17,103 | 5 | % | 24,593 | 8 | % | ||||||||||||||||||||||||||||||
United Kingdom | 29,182 | 8 | % | 34,498 | 11 | % | 50,742 | 12 | % | |||||||||||||||||||||||||||||||||||||||
Germany | 26,457 | 8 | % | 13,836 | 4 | % | 18,201 | 4 | % | — | — | 26,457 | 8 | % | 13,836 | 4 | % | |||||||||||||||||||||||||||||||
Russia | 1,927 | 1 | % | 3,141 | 1 | % | 24,095 | 6 | % | |||||||||||||||||||||||||||||||||||||||
Other (1) | 27,984 | 8 | % | 27,319 | 8 | % | 46,779 | 11 | % | 32,670 | 8 | % | 29,911 | 9 | % | 30,460 | 9 | % | ||||||||||||||||||||||||||||||
Europe — Total | 113,852 | 33 | % | 108,748 | 34 | % | 178,855 | 42 | % | 93,310 | 23 | % | 113,852 | 33 | % | 108,748 | 34 | % | ||||||||||||||||||||||||||||||
Asia and South Pacific: | ||||||||||||||||||||||||||||||||||||||||||||||||
India | 64,381 | 18 | % | 39,640 | 13 | % | 19,572 | 4 | % | 87,492 | 22 | % | 64,381 | 18 | % | 39,640 | 13 | % | ||||||||||||||||||||||||||||||
Philippines | 29,825 | 9 | % | 29,129 | 9 | % | 38,677 | 9 | % | 35,009 | 9 | % | 29,825 | 9 | % | 29,129 | 9 | % | ||||||||||||||||||||||||||||||
Indonesia | 16,308 | 5 | % | 8,320 | 3 | % | 7,915 | 2 | % | 32,336 | 8 | % | 16,308 | 5 | % | 8,320 | 3 | % | ||||||||||||||||||||||||||||||
Malaysia | 26,748 | 7 | % | 8,767 | 3 | % | 2,647 | 1 | % | |||||||||||||||||||||||||||||||||||||||
China | 22,611 | 6 | % | 23,882 | 8 | % | 37,943 | 9 | % | 21,103 | 5 | % | 22,611 | 6 | % | 23,882 | 8 | % | ||||||||||||||||||||||||||||||
Other | 19,263 | 6 | % | 18,967 | 5 | % | 31,141 | 7 | % | 18,756 | 4 | % | 10,496 | 3 | % | 16,320 | 4 | % | ||||||||||||||||||||||||||||||
Asia and South Pacific — Total | 152,388 | 44 | % | 119,938 | 38 | % | 135,248 | 31 | % | 221,444 | 55 | % | 152,388 | 44 | % | 119,938 | 38 | % | ||||||||||||||||||||||||||||||
Mexico, South and Central America: | ||||||||||||||||||||||||||||||||||||||||||||||||
Chile | 8,939 | 3 | % | 8,939 | 3 | % | 24,336 | 6 | % | |||||||||||||||||||||||||||||||||||||||
Other | 8,626 | 2 | % | 8,768 | 3 | % | 16,732 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Mexico, South and Central America — Total | 17,565 | 5 | % | 17,707 | 6 | % | 41,068 | 10 | % | 11,415 | 3 | % | 17,565 | 5 | % | 17,707 | 6 | % | ||||||||||||||||||||||||||||||
North America: | ||||||||||||||||||||||||||||||||||||||||||||||||
United States | 17,647 | 5 | % | 24,591 | 8 | % | 37,316 | 9 | % | 20,147 | 5 | % | 17,647 | 5 | % | 24,591 | 8 | % | ||||||||||||||||||||||||||||||
Other | 6,237 | 2 | % | 6,223 | 2 | % | 6,380 | 1 | % | 6,242 | 2 | % | 6,237 | 2 | % | 6,223 | 2 | % | ||||||||||||||||||||||||||||||
North America — Total | 23,884 | 7 | % | 30,814 | 10 | % | 43,696 | 10 | % | 26,389 | 7 | % | 23,884 | 7 | % | 30,814 | 10 | % | ||||||||||||||||||||||||||||||
Middle East and Africa: | ||||||||||||||||||||||||||||||||||||||||||||||||
Ethiopia | 30,018 | 9 | % | 30,084 | 10 | % | 22,808 | 5 | % | 30,019 | 8 | % | 30,018 | 9 | % | 30,084 | 10 | % | ||||||||||||||||||||||||||||||
Other | 9,918 | 2 | % | 8,357 | 2 | % | 8,315 | 2 | % | 17,612 | 4 | % | 9,918 | 2 | % | 8,357 | 2 | % | ||||||||||||||||||||||||||||||
Middle East and Africa — Total | 39,936 | 11 | % | 38,441 | 12 | % | 31,123 | 7 | % | 47,631 | 12 | % | 39,936 | 11 | % | 38,441 | 12 | % | ||||||||||||||||||||||||||||||
Total Lease Revenue | $ | 347,625 | 100 | % | $ | 315,648 | 100 | % | $ | 429,990 | 100 | % | $ | 400,189 | 100 | % | $ | 347,625 | 100 | % | $ | 315,648 | 100 | % |
(1) | Includes $0.7 million, |
Airframe Type | |||||||||||||||
Year of Scheduled Lease Expiration | Narrow | Wide | Total | Narrow-body | Wide-body | Engines | Total | ||||||||
Off-lease | 1 | 1 | 2 | ||||||||||||
2018 | 7 | — | 7 | ||||||||||||
2019 | 15 | 2 | 17 | 7 | 2 | — | 9 | ||||||||
2020 | 11 | (1) | — | 11 | 12 | (1) | — | — | 12 | ||||||
2021 | 8 | — | 8 | 14 | 1 | — | 15 | ||||||||
2022 | 10 | — | 10 | 19 | — | 6 | 25 | ||||||||
2023 | 6 | — | 6 | 8 | — | 1 | 9 | ||||||||
2024 | 4 | — | 4 | 9 | — | — | 9 | ||||||||
2025 | 3 | (2) | 3 | 6 | 5 | (2) | 2 | — | 7 | ||||||
2026 | 2 | — | 2 | 5 | — | — | 5 | ||||||||
2027 | 2 | (3) | 2 | 4 | 3 | 2 | (3) | — | 5 | ||||||
2028 | 1 | 3 | 4 | 4 | 3 | — | 7 | ||||||||
2029 | 3 | 1 | 4 | 3 | 1 | — | 4 | ||||||||
2030 | 1 | — | — | 1 | |||||||||||
Total | 73 | 12 | 85 | 90 | 11 | 7 | 108 |
(1) | Includes one freighter. |
(2) | Includes an investment in finance lease. |
(3) | Includes two freighters. |
Lessee | Sublessee | |
Transavia France | Air Transat | |
Air Transat | ||
Smartwings | Sunwing Airlines |
● | Flight equipment where original manufacturer’s prices are not relevant due to plane modifications and |
● | Flight equipment that is out of production and may have a shorter useful life or lower residual value due to |
● | The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of |
● | Flight equipment which management believes will be disposed of prior to the end of its estimated useful |
● | Operating lease revenue. We receive lease revenue from flight equipment under operating leases. Rental income from aircraft and aircraft equipment is recognized on a straight-line basis over the initial term of the respective lease. The operating lease agreements generally do not provide for purchase options, however, the leases may allow the lessee to exercise an option to extend the lease for an additional term. Contingent rents are recognized as revenue when the contingency is resolved. Revenue is not recognized when collection is not reasonably |
● | End of lease income. The amount of end of lease income we recognize in any reporting period is inherently volatile and depends upon a number of factors, including the timing of both scheduled and unscheduled lease expiries, and the timing of maintenance performed on the aircraft or aircraft equipment by the lessee, among |
● | Lease incentives. Our leases may contain provisions which require us to contribute a portion of the lessee’s costs for heavy maintenance, overhaul or replacement of certain high-value components. We account for these expected payments as lease incentives, which are amortized as a reduction of lease revenue over the life of the |
● | Lease premium and discount. Lease premiums and lease discounts are amortized into operating lease revenue over the lease term. Amortization of lease premiums decreases rental revenue and amortization of lease discounts increases rental revenue. |
● | Finance lease income. Revenue from finance leases is recognized using the interest method to produce a level yield over the life of the finance |
Years ended | Increase/ | |||||||||||
2018 | 2017 | (Decrease) | ||||||||||
(Dollars in thousands) | ||||||||||||
Revenues | ||||||||||||
Operating lease revenue | $ | 399,514 | $ | 346,894 | $ | 52,620 | ||||||
Finance lease revenue | 675 | 731 | (56 | ) | ||||||||
Equity earnings (loss) from unconsolidated subsidiary | (54 | ) | 496 | (550 | ) | |||||||
Gain on sale of aircraft | 13,398 | 3,926 | 9,472 | |||||||||
Interest and other income | 4,766 | 1,204 | 3,562 | |||||||||
Total revenues | 418,299 | 353,251 | 65,048 | |||||||||
Expenses | ||||||||||||
Depreciation | 144,084 | 133,227 | 10,857 | |||||||||
Aircraft impairment | — | 22,000 | (22,000 | ) | ||||||||
Interest expense | 144,742 | 127,782 | 16,960 | |||||||||
Selling, general and administrative | 31,185 | 30,671 | 514 | |||||||||
Gain on derivatives | (2,382 | ) | (192 | ) | (2,190 | ) | ||||||
Loss on modification and extinguishment of debt | 2,474 | 23,309 | (20,835 | ) | ||||||||
Maintenance and other costs | 2,547 | 2,524 | 23 | |||||||||
Total expenses | 322,650 | 339,321 | (16,671 | ) | ||||||||
Net income before provision for income taxes | 95,649 | 13,930 | 81,719 | |||||||||
Provision for income taxes | 9,926 | 11,332 | (1,406 | ) | ||||||||
Net income | $ | 85,723 | $ | 2,598 | $ | 83,125 |
Years ended | Increase/ | |||||||||||
2018 | 2017 | (Decrease) | ||||||||||
(Dollars in thousands) | ||||||||||||
Operating lease revenue: | ||||||||||||
Operating lease rental revenue | $ | 389,350 | $ | 337,137 | $ | 52,213 | ||||||
End of lease income | 20,333 | 17,837 | 2,496 | |||||||||
Amortization of lease incentives | (9,738 | ) | (7,668 | ) | (2,070 | ) | ||||||
Amortization of lease premiums, discounts & other | (431 | ) | (412 | ) | (19 | ) | ||||||
Total operating lease revenue | $ | 399,514 | $ | 346,894 | $ | 52,620 |
Years ended | Increase/ (Decrease) | Years ended | Increase/ | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | (Decrease) | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Operating lease revenue | $ | 346,894 | $ | 313,582 | $ | 33,312 | $ | 346,894 | $ | 313,582 | $ | 33,312 | ||||||||||||
Finance lease revenue | 731 | 2,066 | (1,335 | ) | 731 | 2,066 | (1,335 | ) | ||||||||||||||||
Equity earnings from unconsolidated subsidiary | 496 | 530 | (34 | ) | 496 | 530 | (34 | ) | ||||||||||||||||
Gain on sale of aircraft | 3,926 | 27,195 | (23,269 | ) | 3,926 | 27,195 | (23,269 | ) | ||||||||||||||||
Interest and other income | 1,204 | 1,666 | (462 | ) | 1,204 | 1,666 | (462 | ) | ||||||||||||||||
Total revenues | 353,251 | 345,039 | 8,212 | 353,251 | 345,039 | 8,212 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Depreciation | 133,227 | 120,452 | 12,775 | 133,227 | 120,452 | 12,775 | ||||||||||||||||||
Aircraft impairment | 22,000 | 96,122 | (74,122 | ) | 22,000 | 96,122 | (74,122 | ) | ||||||||||||||||
Interest expense | 127,782 | 123,161 | 4,621 | 127,782 | 123,161 | 4,621 | ||||||||||||||||||
Selling, general and administrative | 30,671 | 30,077 | 594 | 30,671 | 30,077 | 594 | ||||||||||||||||||
Ineffective, dedesignated and terminated derivatives | (192 | ) | 91 | (283 | ) | |||||||||||||||||||
Loss (gain) on derivatives | (192 | ) | 91 | (283 | ) | |||||||||||||||||||
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 14,063 | 23,309 | 9,246 | 14,063 | ||||||||||||||||||
Maintenance and other costs | 2,524 | 2,279 | 245 | 2,524 | 2,279 | 245 | ||||||||||||||||||
Total expenses | 339,321 | 381,428 | (42,107 | ) | 339,321 | 381,428 | (42,107 | ) | ||||||||||||||||
Net income (loss) before provision (benefit) for income taxes | 13,930 | (36,389 | ) | 50,319 | 13,930 | (36,389 | ) | 50,319 | ||||||||||||||||
Provision (benefit) for income taxes | 11,332 | (7,277 | ) | 18,609 | 11,332 | (7,277 | ) | 18,609 | ||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 31,710 | $ | 2,598 | $ | (29,112 | ) | $ | 31,710 |
Years ended | Increase/ (Decrease) | Years ended | Increase/ | |||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | (Decrease) | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||
Operating lease revenue: | ||||||||||||||||||||||||
Operating lease rental revenue | $ | 337,137 | $ | 313,976 | $ | 23,161 | $ | 337,137 | $ | 313,976 | $ | 23,161 | ||||||||||||
End of lease income | 17,837 | 8,918 | 8,919 | 17,837 | 8,918 | 8,919 | ||||||||||||||||||
Amortization of lease incentives | (7,668 | ) | (8,898 | ) | 1,230 | (7,668 | ) | (8,898 | ) | 1,230 | ||||||||||||||
Amortization of lease premiums, discounts & other | (412 | ) | (414 | ) | 2 | (412 | ) | (414 | ) | 2 | ||||||||||||||
Total operating lease revenue | $ | 346,894 | $ | 313,582 | $ | 33,312 | $ | 346,894 | $ | 313,582 | $ | 33,312 |
Years ended | Increase/ (Decrease) | |||||||||||
2016 | 2015 | |||||||||||
(Dollars in thousands) | ||||||||||||
Revenues | ||||||||||||
Operating lease revenue | $ | 313,582 | $ | 429,691 | $ | (116,109 | ) | |||||
Finance lease revenue | 2,066 | 299 | 1,767 | |||||||||
Equity earnings from unconsolidated subsidiary | 530 | 1,159 | (629 | ) | ||||||||
Gain on sale of aircraft | 27,195 | 28,959 | (1,764 | ) | ||||||||
Interest and other income | 1,666 | 2,289 | (623 | ) | ||||||||
Total revenues | 345,039 | 462,397 | (117,358 | ) | ||||||||
Expenses | ||||||||||||
Depreciation | 120,452 | 159,732 | (39,280 | ) | ||||||||
Aircraft impairment | 96,122 | 66,093 | 30,029 | |||||||||
Interest expense | 123,161 | 145,448 | (22,287 | ) | ||||||||
Selling, general and administrative | 30,077 | 33,674 | (3,597 | ) | ||||||||
Ineffective, dedesignated and terminated derivatives | 91 | 4,134 | (4,043 | ) | ||||||||
Loss on modification and extinguishment of debt | 9,246 | 17,491 | (8,245 | ) | ||||||||
Maintenance and other costs | 2,279 | 7,628 | (5,349 | ) | ||||||||
Total expenses | 381,428 | 434,200 | (52,772 | ) | ||||||||
Net income (loss) before provision (benefit) for income taxes | (36,389 | ) | 28,197 | (64,586 | ) | |||||||
Provision (benefit) for income taxes | (7,277 | ) | 5,399 | (12,676 | ) | |||||||
Net income (loss) | $ | (29,112 | ) | $ | 22,798 | $ | (51,910 | ) |
Years ended | Increase/ (Decrease) | |||||||||||
2016 | 2015 | |||||||||||
(Dollars in thousands) | ||||||||||||
Operating lease revenue: | ||||||||||||
Operating lease rental revenue | $ | 313,976 | $ | 398,741 | $ | (84,765 | ) | |||||
End of lease income | 8,918 | 53,760 | (44,842 | ) | ||||||||
Amortization of lease incentives | (8,898 | ) | (20,527 | ) | 11,629 | |||||||
Amortization of lease premiums, discounts & other | (414 | ) | (2,283 | ) | 1,869 | |||||||
Total operating lease revenue | $ | 313,582 | $ | 429,691 | $ | (116,109 | ) |
If redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | Redemption Price | ||||||
2017 | 104.781 | % | ||||||
2018 | 103.188 | % | 103.188 | % | ||||
2019 | 101.594 | % | 101.594 | % | ||||
2020 and thereafter | 100.000 | % | 100.000 | % |
If redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | |||
2020 | 102.625 | % | ||
2021 | 101.313 | % | ||
2022 and thereafter | 100.000 | % |
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||
Principal payments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal payment under the 2021 Notes | $ | — | $ | — | $ | — | $ | 325,000 | $ | — | $ | — | $ | 325,000 | $ | — | $ | — | $ | 325,000 | $ | — | $ | — | $ | — | $ | 325,000 | ||||||||||||||||||||||||||||
Principal payment under the 2024 Notes | — | — | — | — | — | 300,000 | 300,000 | — | — | — | — | — | 300,000 | 300,000 | ||||||||||||||||||||||||||||||||||||||||||
Principal payments under the Securitization Notes (1) | 10,497 | 16,208 | 3,447 | 12,047 | 12,337 | 47,015 | 101,551 | 60,378 | 3,980 | 8,525 | 12,701 | — | — | 85,584 | ||||||||||||||||||||||||||||||||||||||||||
Principal payments under the Nord LB Facility | 153,176 | — | — | — | — | — | 153,176 | 45,268 | 63,614 | — | — | — | — | 108,882 | ||||||||||||||||||||||||||||||||||||||||||
Principal payments under the CBA Facility | 7,816 | 8,172 | 33,092 | — | — | — | 49,080 | |||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments under the Term Loan (3) | 23,504 | 22,404 | 22,404 | 22,404 | 22,404 | 318,151 | 431,271 | |||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments under the Term Loan | 22,404 | 22,404 | 22,404 | 22,404 | 318,152 | — | 407,768 | |||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments under the Magellan Acquisition Limited Facility | 26,542 | 26,542 | 26,542 | 26,542 | 26,542 | 199,058 | 331,768 | 26,542 | 26,542 | 26,542 | 26,542 | 26,542 | 172,516 | 305,226 | ||||||||||||||||||||||||||||||||||||||||||
Principal payments under the Fly Acquisition III Facility | 7,182 | 7,182 | 7,182 | 7,182 | 7,182 | 50,610 | 86,520 | 33,752 | 13,157 | 23,966 | 119,582 | — | — | 190,457 | ||||||||||||||||||||||||||||||||||||||||||
Principal payments under the Aladdin Acquisition Facility | 43,689 | 78,472 | 35,548 | 37,250 | 272,220 | — | 467,179 | |||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments under the Aladdin Engine Funding Facility | 1,490 | 1,565 | 32,240 | 8,534 | — | — | 43,829 | |||||||||||||||||||||||||||||||||||||||||||||||||
Principal payments under Other Aircraft Secured Borrowings | 81,197 | 88,722 | 94,517 | 84,322 | 105,971 | 450,796 | 905,525 | 81,159 | 94,085 | 83,816 | 105,367 | 248,448 | 195,007 | 807,882 | ||||||||||||||||||||||||||||||||||||||||||
Total principal payments | 309,914 | 169,230 | 187,184 | 477,497 | 174,436 | 1,365,630 | 2,683,891 | 314,682 | 303,819 | 558,041 | 332,380 | 865,362 | 667,523 | 3,041,807 | ||||||||||||||||||||||||||||||||||||||||||
Interest payments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest payments under the 2021 Notes and 2024 Notes | 36,469 | 36,469 | 36,469 | 32,152 | 15,750 | 28,219 | 185,528 | 36,469 | 36,469 | 32,152 | 15,750 | 15,750 | 12,469 | 149,059 | ||||||||||||||||||||||||||||||||||||||||||
Interest payments under secured borrowings (4) | 66,750 | 54,524 | 49,311 | 42,350 | 38,015 | 59,244 | 310,194 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest payments under secured borrowings (2) | 90,253 | 77,300 | 68,519 | 53,472 | 30,884 | 26,596 | 347,024 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total interest payments | 103,219 | 90,993 | 85,780 | 74,502 | 53,765 | 87,463 | 495,722 | 126,722 | 113,769 | 100,671 | 69,222 | 46,634 | 39,065 | 496,083 | ||||||||||||||||||||||||||||||||||||||||||
Payments to BBAM and its affiliates under our management agreement (5) | 7,307 | 7,307 | 7,307 | 7,307 | 7,307 | 54,799 | 91,334 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payments to BBAM and its affiliates under our administrative services and servicing agreements (6) | 13,256 | 12,734 | 11,155 | 9,722 | 8,292 | 28,491 | 83,650 | |||||||||||||||||||||||||||||||||||||||||||||||||
Purchase price of Portfolio B aircraft in the AirAsia Transactions (3) | 200,839 | 303,000 | 555,744 | — | — | — | 1,059,583 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition fees related to Portfolio B in the AirAsia Transactions (3) | 3,013 | 4,545 | 8,336 | — | — | — | 15,894 | |||||||||||||||||||||||||||||||||||||||||||||||||
Disposition fees on flight equipment held for sale | 5,264 | — | — | — | — | — | 5,264 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payments to BBAM and its affiliates under our management agreement (4) | 9,561 | 9,561 | 9,561 | 9,561 | 9,561 | 62,146 | 109,951 | |||||||||||||||||||||||||||||||||||||||||||||||||
Payments to BBAM and its affiliates under our administrative services and servicing agreements (5) | 16,106 | 14,887 | 12,976 | 10,889 | 8,810 | 24,641 | 88,309 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 433,696 | $ | 280,264 | $ | 291,426 | $ | 569,028 | $ | 243,800 | $ | 1,536,383 | $ | 3,354,597 | $ | 676,187 | $ | 749,581 | $ | 1,245,329 | $ | 422,052 | $ | 930,367 | $ | 793,375 | $ | 4,816,891 |
(1) | Principal payments under the Securitization Notes are determined monthly based on revenues collected and costs and other liabilities incurred prior to the relevant payment date. Future principal payment amounts are estimated based upon existing leases and current re-leasing assumptions. |
(2) |
For variable rate borrowings based on LIBOR plus the applicable margin, LIBOR is assumed to remain at the current rate in effect at year end through the term of the loan. |
Assumes |
(4) | Assumes automatic extension for one additional term of five years to |
Amounts in the table reflect the application of these servicing fees to our aircraft at December 31, |
Name | Age | Position | ||
Colm Barrington | Chief Executive Officer and Director | |||
Julie Ruehl | Chief Financial Officer | |||
Joseph M. Donovan | Director and Chairman | |||
Erik G. Braathen | Director | |||
Eugene McCague | Director | |||
Robert S. Tomczak | Director | |||
Susan M. Walton | Director | |||
Steven Zissis | Director |
● | selecting independent auditors for approval by our |
● | reviewing the scope of the audit to be conducted by our independent auditors, as well as the results of their |
● | approving audit and non-audit services provided to us by the independent |
● | reviewing the organization and scope of our internal system of audit, financial and disclosure |
● | overseeing internal controls and risk |
● | overseeing our financial reporting activities, including our annual report, and the accounting standards and principles |
● | reviewing and approving related-party transactions and preparing reports for the board of directors on such related-party |
● | conducting other reviews relating to compliance with applicable laws and our policies, including reviewing at least annually our decision to enter into swaps, and our hedging policy; and |
● | overseeing our internal audit function. |
Shares Beneficially Owned | Shares Beneficially Owned | |||||||||||||||
Name | Number | Percent | Number | Percent | ||||||||||||
Donald Smith & Co., Inc. (1) | 2,814,483 | 10.1 | % | |||||||||||||
AirAsia Group Berhad (1) | 3,333,333 | 10.2 | % | |||||||||||||
Onex Corporation (2) | 2,443,476 | 8.7 | % | 3,110,143 | 9.5 | % | ||||||||||
Summit Aviation Partners LLC (3) | 1,708,156 | 6.1 | % | |||||||||||||
Donald Smith & Co., Inc. (3) | 2,670,572 | 8.2 | % | |||||||||||||
Summit Aviation Partners LLC (4) | 2,195,864 | 6.7 | % | |||||||||||||
Morgan Stanley (5) | 1,770,913 | 5.4 | % |
(1) | The information above and in this footnote is based on information taken from the Schedule 13G filed by |
(2) | The information above and in this footnote is based on information taken from the Schedule 13G/A filed by Onex Corporation, Onex Partners III GP LP, Onex Partners GP Inc., Onex US Principals LP, Onex American Holdings GP LLC, Onex American Holdings II LLC, Onex Partners III PV LP, Onex Partners III Select LP, Onex Partners III LP, New PCo II Investments Ltd., Meridian Aviation Partners Limited, Onex ATR S.a.r.l., ATR Aviation Holdings I Corporation, Onex Partners III International LP , Onex Partners III International GP LP, Onex Partners III International GP LLC, Onex Partners Canadian GP Inc., and Gerald W. Schwartz (collectively, the “Onex Reporting Persons”) with the SEC on |
(3) | The information above and in this footnote is based on information taken from the Schedule 13G filed by Donald Smith & Co., Inc., Donald Smith Long/Short Equities Fund, L.P., Jon Hartsel, Kamal Shah and John D. Piermont with the SEC on February 8, 2019. Donald Smith & Co., Inc. has sole voting power over 2,429,829 ADSs and sole dispositive power over 2,670,572 ADSs. Donald Smith Long/Short Equities Fund, L.P. has sole voting power over 8,395 ADSs and sole dispositive power over 2,670,572 ADSs. Jon Hartsel has sole voting power over 4,000 ADSs and sole dispositive power over 2,670,572 ADSs. Kamal Shah has sole voting power over 2,500 ADSs and sole dispositive power over 2,670,572 ADSs. John D. Piermont has sole voting power over 2,000 ADSs and sole dispositive power over 2,670,572 ADSs. |
(4) | The information above and in this footnote is based on information taken from the Schedule 13D/A filed by Steven Zissis, |
(5) | The information above and in this footnote is based on information taken from the Schedule 13G/A filed by Morgan Stanley with the SEC on February 12, 2019. Morgan Stanley has shared voting power over 1,599,624 ADSs and shared dispositive power over 1,770,913 ADSs. |
● | managing our portfolio of aircraft and other aviation assets and the administration of our cash balances; |
● | if requested by our board, making available a member of the core management team of our Manager as our nominee on the board of directors of any of our subsidiaries (provided that each such member must be agreed between us and our Manager); |
● | assisting with the implementation of our board’s decisions; |
● | providing us suitably qualified and experienced persons to perform the management and administrative services for us and our subsidiaries, including persons to be appointed by our board to serve as our dedicated chief executive and chief financial officers (who shall remain employees of, and be remunerated by, our Manager or an affiliate of our Manager while serving in such capacities); |
● | performing or procuring the performance of all reasonable accounting, tax, corporate secretarial, information technology, reporting and compliance services for us and our subsidiaries, including the preparation and maintenance of our accounts and such financial statements and other reports and filings as we are required to make with any governmental agency (including the SEC) or stock exchange; |
● | supervising financial audits of us by an external auditor as required; |
● | managing our relations with our investors and the public, including: |
● | preparing our annual reports and any notices of meeting, papers, reports and agendas relating to meetings of our shareholders; and |
● | assisting in the resolution of any complaints by or disputes with our investors and any litigation involving us (other than litigation in which our interests are adverse to those of our Manager or BBAM); and |
● | using commercially reasonable efforts to cause us to comply with all applicable laws. |
● | sourcing opportunities relating to aircraft and other aviation assets, including using its commercially reasonable efforts to notify us of potential aviation asset investment opportunities that come to the attention of our Manager and which our Manager acting reasonably believes may be of interest to us as investments; |
● | in relation to identified potential opportunities to purchase or sell aircraft and other aviation assets, investigating, researching, evaluating, advising and making recommendations on or facilitating such opportunities; |
● | with respect to prospective purchases and sales of aircraft and other aviation assets, conducting negotiations with sellers and purchasers and their agents, representatives and financial advisors; and |
● | with respect to prospective purchases and sales of aircraft and other aviation assets, conducting negotiations with sellers and purchasers and their agents, representatives and financial advisors; and |
● | otherwise providing advice and assistance to us in relation to the evaluation or pursuit of aviation asset investment or disposition opportunities as we may reasonably request from time to time. |
● | the expansion of our Manager’s core management team with additional personnel as may be required by developments or changes in the commercial aircraft leasing industry (whether regulatory, economic or otherwise) or the compliance or reporting environment for publicly listed companies in the United States (whether as a result of changes to securities laws or regulations, listing requirements or accounting principles or otherwise); and |
● | making available individuals (other than members of our Manager’s core management team) as our nominees on the boards of directors of any of our subsidiaries. |
● | that matter has been the subject of a recommendation by our Manager; or |
● | the failure to make that decision, take that action or omit to take that action would breach the fiduciary duties of our directors or any law. |
● | that matter has been the subject of a recommendation by our Manager; or |
● | the failure to make that decision, take that action or omit to take that action would breach the fiduciary duties of our directors or any law. |
(1) | carry out any transaction with an affiliate of our Manager on our behalf, it being understood that BBAM has been appointed as the exclusive Servicer for our portfolio of aircraft, and that our Manager may delegate the provision of all or any part of the services under the Management Agreement to any person affiliated or associated with BBAM; |
(2) | carry out any aviation asset investment or disposition transaction, or sequence of related aviation asset investment or disposition transactions with the same person or group of persons under common control, for us if the aggregate purchase price to be paid or the gross proceeds to be received by us in connection therewith would exceed $200 million; |
(3) | carry out any aviation asset investment or disposition transaction if the sum of all the purchase prices to be paid or of all the gross proceeds to be received by us in connection with all such transactions during any quarter would exceed $500 million; |
(4) | appoint or retain any third-party service provider to assist our Manager in providing management and administrative services if: |
● | the amount to be paid by our Manager and reimbursed by us or paid by us to the third party with respect to any particular matter, or series of related matters, is reasonably likely to exceed $1 million; or |
● | as a result of the appointment or retention, the amount to be paid by our Manager and reimbursed by us or paid by us to all such third-party service providers appointed or retained in any rolling 12-month period is reasonably likely to exceed $5 million; |
(5) | appoint or retain any third-party service provider to assist our Manager in providing ancillary management and administrative or the origination and disposition services if: |
● | the amount to be paid by our Manager and reimbursed by us or paid by us to the third party with respect to any particular matter, or series of related matters, is reasonably likely to exceed $1 million; or |
● | as a result of the appointment or retention, the amount to be paid by our Manager and reimbursed by us or paid by us to all such third-party service providers appointed or retained in any rolling 12-month period is reasonably likely to exceed $7.5 million; or |
(6) | hold any cash or other assets of ours, provided that our Manager may cause our cash and other assets to be held in our name or any custodian for us nominated or approved by us. |
● | for all our costs paid for us by our Manager (other than remuneration and certain expenses in relation to our Manager’s core management team and our Manager’s corporate overhead), including the following items which are not covered by the management expense amount: |
● | directors’ fees for the independent directors on our board of directors and our subsidiaries, |
● | directors’ and officers’ insurance for our and our subsidiaries’ directors and officers, |
● | travel expenses of the directors (including flights, accommodation, taxis, entertainment and meals while traveling) to attend any meeting of the board of our Company, |
● | registration and listing fees in connection with the listing of our shares on the NYSE and registering the shares under the Securities Act, |
● | fees and expenses relating to any equity or debt financings we enter into in the future, |
● | fees and expenses of the depositary for our ADSs, |
● | costs and expenses related to insuring our aircraft and other aviation assets, including all fees and expenses of insurance advisors and brokers, |
● | costs incurred in connection with organizing and hosting our annual meetings or other general meetings of our Company, |
● | costs of production and distribution of any of our security holder communications, including notices of meetings, annual and other reports, press releases, and any prospectus, disclosure statement, offering memorandum or other form of offering document, |
● | website development and maintenance, |
● | travel expenses of the core management team and other personnel of BBAM and its affiliates (including flights, accommodation, taxis, entertainment and meals while traveling) related to sourcing, negotiating and conducting transactions on our behalf and attending any meeting of the board or our Company, |
● | external legal counsel, |
● | fees of third party consultants, accounting firms and other professionals, |
● | external auditor’s fees, and |
● | internal auditor’s fees. |
● | for all taxes, costs, charges and expenses properly incurred by our Manager in connection with: |
● | the provision of ancillary management and administrative services, and |
● | the engagement of professional advisors, attorneys, appraisers, specialist consultants and other experts as requested by us from time to time; or which our Manager considers reasonably necessary in providing the services and discharging its duties and other functions under the Management Agreement, including, without limitation, the fees and expenses of professional advisors relating to the purchase and sale of aircraft and other aviation assets. |
● | BBAM LP ceases to hold (directly or indirectly) more than 50% of the voting equity of, and economic interest in our Manager; |
● | our Manager becomes subject to bankruptcy or insolvency proceedings that are not discharged within 75 days, unless our Manager is withdrawn and replaced within 90 days of the initiation of such bankruptcy or insolvency proceedings with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the Management Agreement; |
● | at least 75% of our independent directors and holders of 75% or more of all of our outstanding common shares (measured by vote) determine by resolution that there has been unsatisfactory performance by our Manager that is materially detrimental to us; |
● | our Manager materially breaches the Management Agreement and fails to remedy such breach within 90 days of receiving written notice from us requiring it to do so, or such breach results in liability to us and is attributable to our Manager’s gross negligence, fraud or dishonesty, or willful misconduct in respect of the obligation to apply the standard of care; |
● | any license, permit or authorization held by our Manager which is necessary for it to perform the services and duties under the Management Agreement is materially breached, suspended or revoked, or otherwise made subject to conditions which, in the reasonable opinion of our board of directors, would prevent our Manager from performing the services and the situation is not remedied within 90 days; |
● | our Manager voluntarily commences or files any petition seeking bankruptcy, insolvency or receivership relief; consents to the institution of, or fails to contest the filing of any bankruptcy or insolvency filing; files an answer admitting the material allegations filed against it in any such proceeding; or makes a general assignment for the benefit of its creditors, unless our Manager is withdrawn and replaced within 15 days with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the Management Agreement; or |
● | an order is made for the winding up of our Manager, unless our Manager is withdrawn and replaced within 15 days with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the Management Agreement. |
● | we fail to make any payment due under the Management Agreement to our Manager within 15 days after the same becomes due; |
● | we otherwise materially breach the Management Agreement and fail to remedy the breach within 90 days of receiving written notice from our Manager requiring us to do so; or |
● | if the directors in office on December 28, 2012 and any successor to any such director who was nominated or selected by a majority of the current directors and our Manager appointed directors, cease to constitute at least a majority of the board (excluding directors appointed by our Manager). (See “Board Appointees”.) |
● | dealing or conducting business with us, our Manager, any affiliate or associate of BBAM or any shareholder of ours; |
● | being interested in any contract or transaction with us, our Manager, any affiliate or associate of BBAM or any shareholder of ours; |
● | acting in the same or similar capacity in relation to any other corporation or enterprise; |
● | holding or dealing in any of our shares or other securities or interests therein; or |
● | co-investing with us. |
● | lease marketing and remarketing, including lease negotiation; |
● | collecting rental payments and other amounts due under leases, collecting maintenance payments where applicable, lease compliance and enforcement and delivery and accepting redelivery of aircraft and engines under lease; |
● | implementing aircraft and engine dispositions; |
● | monitoring the performance of maintenance obligations of lessees under the leases; |
● | procuring legal and other professional services with respect to the lease, sale or financing of the aircraft or engines, any amendment or modification of any lease, the enforcement of our rights under any lease, disputes that arise as to any aircraft or engines or for any other purpose that BBAM reasonably determines is necessary in connection with the performance of its services; |
● | periodic reporting of operational information relating to the aircraft and engines, including providing certain reports to lenders and other third parties; and |
● | certain aviation insurance related services. |
● | Bankruptcy or insolvency of BBAM LP; |
● | BBAM LP ceasing to own, directly or indirectly, at least 50% of the Servicer; |
● | Summit ceasing to own, directly or indirectly, at least 33.33% of the partnership interests in BBAM LP; provided that a sale that results in such ownership being at a level below 33.33% shall not constitute a servicer termination event if the sale is to a publicly listed entity or other person with a net worth of at least $100 million; and |
● | during any one year period commencing each April 29, 50% or more of the Servicer’s key finance and legal team or technical and marketing team ceasing to be employed by BBAM LP and are not replaced with employees with reasonably comparable experience within 90 days. |
Dividend payment date | Dividends paid per share | Total cash outlay | |||||||
November 20, 2015 | $ | 0.25 | $ | 10.3 million | |||||
August 20, 2015 | $ | 0.25 | $ | 10.4 million | |||||
May 20, 2015 | $ | 0.25 | $ | 10.4 million | |||||
February 20, 2015 | $ | 0.25 | $ | 10.4 million |
High | Low | |||||||
2013 | $ | 17.37 | $ | 12.51 | ||||
2014 | 16.59 | 10.86 | ||||||
2015 | 16.29 | 11.77 | ||||||
2016 | 14.45 | 9.54 | ||||||
2017 | 14.65 | 11.91 |
High | Low | |||||||
2016 | ||||||||
Quarter ending March 31, 2016 | $ | 13.85 | $ | 10.63 | ||||
Quarter ending June 30, 2016 | 12.65 | 9.71 | ||||||
Quarter ending September 30, 2016 | 12.47 | 9.54 | ||||||
Quarter ending December 31, 2016 | 14.45 | 11.53 | ||||||
2017 | ||||||||
Quarter ending March 31, 2017 | 14.40 | 12.50 | ||||||
Quarter ending June 30, 2017 | 13.82 | 11.91 | ||||||
Quarter ending September 30, 2017 | 14.65 | 13.01 | ||||||
Quarter ending December 31, 2017 | 14.58 | 12.91 |
High | Low | |||||||
2017 | ||||||||
September 2017 | $ | 14.65 | $ | 13.32 | ||||
October 2017 | 14.58 | 13.62 | ||||||
November 2017 | 14.35 | 13.20 | ||||||
December 2017 | 14.05 | 12.91 | ||||||
2018 | ||||||||
January 2018 | 13.50 | 12.81 | ||||||
February 2018 | 13.13 | 11.54 |
1) | Deposit Agreement between Deutsche Bank Trust Company Americas and Babcock & Brown Air Limited. See Item 5 “Liquidity and Capital Resources—Financing— Term Loan.” |
2) | Servicing Agreement, dated as of October 2, 2007, among Babcock & Brown Aircraft Management LLC, Babcock & Brown Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. See Item 7 “Related Party Transactions — Servicing Agreement.” |
3) | Administrative Services Agreement, dated as of October 2, 2007, among Deutsche Bank Trust Company Americas, AMBAC Assurance Corporation, Babcock & Brown Air Management Co. Limited and Babcock & Brown Air Funding I Limited. See Item 7 “Related Party Transactions — Servicing Agreement.” |
4) | Trust Indenture, dated as of October 2, 2007, among Deutsche Bank Trust Company Americas, BNP Paribas, AMBAC Assurance Corporation and Babcock & Brown Air Funding I Limited. See Item 5 “Liquidity and Capital Resources — Financing — Securitization.” |
5) | Security Trust Agreement, dated as of October 2, 2007, between Deutsche Bank Trust Company Americas, and Babcock & Brown Air Funding I Limited. See Item 5 “Liquidity and Capital Resources—Financing— Securitization Notes.” |
6) | Cash Management Agreement between Deutsche Bank Trust Company Americas and Babcock & Brown Air Funding I Limited. See Item 5 “Liquidity and Capital Resources—Financing— Securitization Notes.” |
7) | Form of Director Service Agreement between Babcock & Brown Air Limited and each director thereof. See Item 6. “Directors, Senior Management and Employees.” |
8) | Amendment No. 1 to Servicing Agreement, dated as of April 29, 2010, among Babcock & Brown Aircraft Management LLC, Babcock & Brown Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. See Item 7 “Related Party Transactions — Servicing Agreement.” |
9) | Fly Leasing Limited Omnibus Incentive Plan. |
10) | Form of Stock Appreciation Right Award Agreement. |
11) | Form of Restricted Stock Unit Award Agreement. |
12) | Form of Loan Agreement among Hobart Aviation Holdings Limited, Norddeutsche Landesbank Girozentrale and each borrower thereof. See Item 5 “Liquidity and Capital Resources – Financing – Nord LB Facility.” |
13) | Form of Servicing Agreement among BBAM US LP, BBAM Aviation Services Limited and each company thereof. See Item 7 “Related Party Transactions — Servicing Agreement.” |
14) | Securities Purchase Agreement dated November 30, 2012, by and among Fly Leasing Limited, Summit Aviation Partners LLC and such persons identified therein. See Item 7, “Major Shareholders and Related Party Transactions.” |
15) | Purchase Agreement dated November 30, 2012 by and among BBAM Limited Partnership, Summit Aviation Partners LLC, Fly-BBAM Holdings Ltd., Summit Aviation Management Co., Ltd. and such persons identified therein. See Item 7, “Major Shareholders and Related Party Transactions.” |
16) | First Amendment to Purchase |
17) | Amended and Restated Fly Leasing Limited Management Agreement dated as of December 28, 2012, between Fly Leasing Limited and Fly Leasing Management Co. Limited. See Item 7 “Related Party Transactions — Management Agreement.” |
18) | Registration Rights Agreement dated as of December 28, 2012, by and among Fly Leasing Limited and each shareholder identified therein. See Item 7, “Major Shareholders and Related Party Transactions.” |
19) | Amended and Restated Servicing Agreement, dated as of January 24, 2013, by and among BBAM US LP, BBAM Aviation Services Limited and Fly Leasing Limited. See Item 7 “Related Party Transactions — Servicing Agreement.” |
20) | Amended and Restated Term Loan Credit Agreement, dated as of November 21, 2013, among Fly Funding II S.à r.l., Fly Leasing Limited, Fly Peridot Holdings Limited, Babcock & Brown Air Acquisition I Limited, each other Guarantor Party referred to therein, the Lenders identified therein, Citibank, N.A., and Wells Fargo Bank Northwest, National Association. See Item 5 “Liquidity and Capital Resources – Financing – Term Loan.” |
21) | Indenture dated December 11, 2013, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 “Liquidity and Capital Resources—Financing—Unsecured Borrowing.” |
22) | First Supplemental Indenture, dated December 11, 2013, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 “Liquidity and Capital Resources—Financing—Unsecured Borrowing.” |
23) | Second Supplemental Indenture, dated as of October 3, 2014, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 “Liquidity and Capital Resources—Financing—Unsecured Borrowing.” |
24) | Amendment No. 1 to Trust Indenture, dated as of October 24, 2014, by and among Babcock & Brown Air Funding I Limited, Deutsche Bank Trust Company Americas, BNP Paribas and AMBAC Assurance Corporation. See Item 5 “Liquidity and Capital Resources—Financing— Securitization Notes.” |
25) | Amendment No. 2 to Servicing Agreement, dated as of October 24, 2014, by and among BBAM Aircraft Management LP, BBAM Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. See Item 7 “Related Party Transactions — Servicing Agreement.” |
26) | Amendment to Credit Agreement, dated as of April 22, 2015, among Fly |
27) | First Amendment to Amended and Restated Fly Leasing Limited Management Agreement, dated June 19, 2015, between Fly Leasing Limited and Fly Leasing Management Co. Limited. See Item 7 “Related Party Transactions — Management Agreement.” |
28) | Servicing Agreement dated as of February 26, 2016, among BBAM US LP, BBAM Aviation Services Limited and Fly Acquisition III Limited. See Item 7 “Related Party Transactions — Servicing Agreement.” |
29) | Facility Agreement [Fly 2016A Warehouse] dated as of February 26, 2016 among Fly Acquisition III Limited, the Subsidiary Guarantors party thereto, the Lenders party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Fly Acquisition III.” |
30) | Note Purchase Agreement [Fly 2016A Warehouse] dated as of February 26, 2016 among Fly Acquisition III Limited, the Purchasers party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Fly Acquisition III.” |
31) | Credit Agreement [Fly 2016A Warehouse] dated as of February 26, 2016 among Fly Acquisition III Limited, the Banks party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Fly Acquisition III.” |
32) | Guaranty [Fly 2016A Warehouse] dated February 26, 2016 by Fly Leasing Limited. See Item 5 “Liquidity and Capital Resources—Financing—Fly Acquisition III.” |
33) | Security Agreement [Fly 2016A Warehouse] dated February 26, 2016 among Fly Acquisition III Limited, the Grantors party thereto, and Well Fargo Bank, National Association as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Fly Acquisition III. |
34) | Aircraft Mortgage and Security Agreement dated as of August 9, 2012, among Fly Funding II S.a.r.l.., Fly Leasing Limited, Fly Peridot Holdings Limited, Babcock & Brown Air Acquisition I Limited, The Initial Intermediate Lessees, The Initial Lessor Subsidiaries, The Additional Grantors Referred to Therein and Wells Fargo Bank Northwest, National Association. See Item 5 “Liquidity and Capital Resources—Financing—Term Loan.” |
35) | Second Amendment to Credit Agreement, dated as of October 19, 2016, among Fly Funding II S.à r.l., each Borrower Party named therein, the Consenting Lenders and the Replacement Lenders named therein, Wells Fargo Bank Northwest, National Association, as Collateral Agent, and Citibank N.A., in its capacity as Administrative Agent. See Item 5 “Liquidity and Capital Resources—Financing—Term Loan.” |
36) | Second Amendment to Amended and Restated Fly Leasing Limited Management Agreement, dated July 27, 2016, between Fly Leasing Limited and Fly Leasing Management Co. Limited. See Item 7 “Related Party Transactions — Management Agreement.” |
37) | Amendment No. 3 to Servicing Agreement, dated as of February 1, 2017, by and among BBAM Aircraft Management LP, BBAM Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. See Item 7 “Related Party Transactions — Servicing Agreement.” |
38) | Third Amendment to Amended and Restated Fly Leasing Limited Management Agreement, dated as of February 1, 2017, between Fly Leasing Limited and Fly Leasing Management Co. Limited. See Item 7 “Related Party Transactions — Management Agreement.” |
39) | Fee Rebate Side Letter, dated as of February 1, 2017, by and among Babcock & Brown Air Funding I Limited, Fly Leasing Management Co. Limited, and AMBAC Assurance Corporation. See Item 7 “Related Party Transactions — Management Agreement.” |
40) | Third Supplemental Indenture dated as of October 16, 2017, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 “Liquidity and Capital Resources—Financing—Unsecured Borrowing.” |
41) | Servicing Agreement dated as of December 8, 2017, among BBAM US LP, BBAM Aviation Services Limited and Magellan Acquisition Limited. See Item 7 “Related Party Transactions — Management Agreement.” |
42) | Third Amendment to Credit Agreement, dated as of April 28, 2017, among Fly Funding II S.à r.l., each Borrower Party named therein, the Consenting Lenders and the Replacement Lenders named therein, Wells Fargo Bank Northwest, National Association, as Collateral Agent, and Citibank N.A., in its capacity as Administrative Agent. See Item 5 “Liquidity and Capital Resources—Financing—Term Loan.” |
43) | Fourth Amendment to Credit Agreement, dated as of November 1, 2017, among Fly Funding II S.à r.l., each Borrower Party named therein, the Consenting Lenders and the Replacement Lenders named therein, Wells Fargo Bank Northwest, National Association, as Collateral Agent, and Citibank N.A., in its capacity as Administrative Agent. See Item 5 “Liquidity and Capital Resources—Financing—Term Loan.” |
44) | Facility Agreement [FLY 2017A Term Loan], dated as of December 8, 2017 among Magellan Acquisition Limited, the Subsidiary Guarantors party thereto, the Lenders party thereto, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Magellan Acquisition Limited.” |
45) | Note Purchase Agreement [FLY 2017A Term Loan], dated as of December 8, 2017 among Magellan Acquisition Limited, the Purchasers party thereto, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Magellan Acquisition Limited.” |
46) | Credit Agreement [FLY 2017A Term Loan], dated as of December 8, 2017 among Magellan Acquisition Limited, the Banks party thereto, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Magellan Acquisition Limited.” |
47) | Security Agreement [FLY 2017A Term Loan], dated as of December 8, 2017 among Magellan Acquisition Limited, the Grantors party thereto, and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Magellan Acquisition Limited.” |
48) | Guaranty [Fly 2017A Term Loan] dated December 8, 2017 by Fly Leasing Limited. See Item 5 “Liquidity and Capital Resources—Financing—Fly Acquisition III.” |
49) | Share Purchase Agreement, dated February 28, 2018, between Asia Aviation Capital Limited, Fly Aladdin Holdings Limited, Fly Leasing Limited and AirAsia Berhad. See Item 5, “Operating and Financial Review and Prospects—AirAsia Transactions.” |
50) | Aircraft Sale and Purchase Agreement, dated February 28, 2018, between Asia Aviation Capital Limited, Fly Aladdin Holdings Limited and AirAsia Berhad. See Item 5, “Operating and Financial Review and Prospects—AirAsia Transactions.” |
51) | Aircraft Sale and Purchase Option Agreement, dated April 26, 2018, but having effect between the parties as of February 28, 2018, between Asia Aviation Capital Limited, Fly Aladdin Holdings Limited and AirAsia Berhad. See Item 5, “Operating and Financial Review and Prospects—AirAsia Transactions.” |
52) | Amended and Restated Commitment Letter, dated May 1, 2018, between BNP Paribas, Citibank, N.A., Commonwealth Bank of Australia, Singapore Branch, Deutsche Bank AG, Singapore Branch and Fly Leasing Limited. See Item 5, “Operating and Financial Review and Prospects—AirAsia Transactions.” |
53) | Equity Commitment Letter, dated February 28, 2018, between Meridian Aviation Partners Limited and Fly Leasing Limited. See Item 7, “Major Shareholders and Related Party Transactions.” |
54) | Equity Commitment Letter, dated February 28, 2018, between Summit Aviation Holdings LLC and Fly Leasing Limited. See Item 7, “Major Shareholders and Related Party Transactions.” |
55) | Amended and Restated Purchase Commitment Letter (Portfolio C Aircraft and Portfolio D Aircraft), dated May 3, 2018, but having effect between the parties as of February 28, 2018, between Fly Leasing Limited and Nomura Babcock & Brown Co., Ltd. See Item 5, “Operating and Financial Review and Prospects—AirAsia Transactions.” |
56) | Amended and Restated Delivery Side Letter (Portfolio C and Portfolio D), dated May 3, 2018, but having effect between the parties as of February 28, 2018, between Fly Leasing Limited and Incline B Aviation Limited Partnership. See Item 5, “Operating and Financial Review and Prospects—AirAsia Transactions.” |
57) | Securities Purchase Agreement, dated July 11, 2018, between Fly Leasing Limited and Meridian Aviation Partners Limited. See Item 7, “Major Shareholders and Related Party Transactions.” |
58) | Securities Purchase Agreement, dated July 11, 2018, between Fly Leasing Limited and Summit Aviation Holdings LLC. See Item 7, “Major Shareholders and Related Party Transactions.” |
59) | Registration Rights Agreement, dated July 18, 2018, among Fly Leasing Limited and shareholders named therein. See Item 7, “Major Shareholders and Related Party Transactions.” |
60) | Subscription Agreement, dated July 18, 2018, among Fly Leasing Limited, AirAsia Group Berhad and AirAsia Berhad. See Item 7, “Major Shareholders and Related Party Transactions.” |
61) | Registration Rights Agreement, dated July 18, 2018, between Fly Leasing Limited and AirAsia Group Berhad. See Item 7, “Major Shareholders and Related Party Transactions.” |
62) | Fly SPA Amendment Agreement (No. 1) dated July 11, 2018, among Fly Aladdin Holdings Limited, Fly Leasing Limited, Asia Aviation Capital Limited and AirAsia Group Berhad. See Item 5, “Operating and Financial Review and Prospects—AirAsia Transactions.” |
63) | Fly SPA Amendment Agreement (No. 2) dated July 18, 2018, among Fly Aladdin Holdings Limited, Fly Leasing Limited, Asia Aviation Capital Limited and AirAsia Group Berhad. See Item 5, “Operating and Financial Review and Prospects—AirAsia Transactions.” |
64) | Servicing Agreement dated June 15, 2018, among BBAM Aviation Services Limited, BBAM US LP, Fly Aladdin Funding Limited, Fly Aladdin MaltaCo Limited and each Borrower Group Company that becomes a party thereto. See Item 7 “Related Party Transactions —Servicing Agreement.” |
65) | Senior Secured Credit Agreement dated June 15, 2018, among Fly Aladdin Funding Limited, as Borrower, Fly Aladdin MaltaCo Limited, as Fly Malta, the lenders party thereto, Wilmington Trust (London) Limited, as Security Trustee and BNP Paribas, as Administrative Agent. See Item 5 “Liquidity and Capital Resources – Financing – Fly Aladdin Acquisition Facility.” See Item 5 “Liquidity and Capital Resources—Financing—Fly Aladdin Engine Funding Facility.” |
66) | Borrower Parent Security Agreement dated June 15, 2018, between Fly Aladdin Holdings Limited, as Grantor and Wilmington Trust (London) Limited, as Security Trustee. See Item 5 “Liquidity and Capital Resources – Financing – Fly Aladdin Acquisition Facility.” |
67) | Co-Borrower Security Agreement dated June 15, 2018, between Fly Aladdin Funding Limited, as Borrower, Fly Aladdin MaltaCo Limited, as Fly Malta and Wilmington Trust (London) Limited, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Fly Aladdin Acquisition Facility.” |
68) | Deed of Limited Guaranty dated June 15, 2018, by Fly Leasing Limited. See Item 5 “Liquidity and Capital Resources—Financing—Fly Aladdin Engine Funding Facility.” |
69) | Amendment to Senior Secured Credit Agreement dated July 19, 2018, among Fly Aladdin Funding Limited, as Borrower, Fly Aladdin MaltaCo Limited, as Fly Malta, the lenders, Wilmington Trust (London) Limited, as Security Trustee and BNP Paribas, as Administrative Agent. See Item 5 “Liquidity and Capital Resources – Financing – Fly Aladdin Acquisition Facility.” See Item 5 “Liquidity and Capital Resources—Financing—Fly Aladdin Acquisition Facility.” |
70) | Omnibus Agreement No. 1 [Fly 2016A Warehouse] dated as of December 15, 2017 among Fly Acquisition III Limited, the Lenders party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Fly Acquisition III Facility.” |
71) | Amendment No. 2 [Fly 2016A Warehouse] dated as of September 6, 2018 among Fly Acquisition III Limited, the Lenders party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. See Item 5 “Liquidity and Capital Resources—Financing—Fly Acquisition III Facility.” |
72) | Purchase Agreement dated November 30, 2018 among the sellers identified therein, Horizon Aircraft Finance I Limited, Horizon Aircraft Finance I LLC and the other purchasers identified therein. See Item 5, “Operating and Financial Review and Prospects.” |
73) | Form of Loan Amendment Letter Agreement among Hobart Aviation Holdings Limited, Norddeutsche Landesbank Girozentrale and each borrower thereof. See Item 5, “Liquidity and Capital Resources—Financing—Nord LB Facility.” |
● | An “Irish Holder” is a holder of our shares that (1) beneficially owns our shares by virtue of holding the related ADSs evidenced by the relevant American Depositary Receipt or ADR; (2) in the case of individual holders, is resident or ordinarily resident in Ireland under Irish taxation laws; and (3) in the case of a holder that is a company, is resident in Ireland under Irish taxation laws and is not also a resident of any other country under any double taxation agreement entered into by Ireland. |
● | A “Non-Irish Holder” is a holder of our shares that is not an Irish Holder and has never been an Irish Holder. |
● | A “US Holder” is a holder of our shares that (1) beneficially owns our shares by virtue of holding the related ADSs evidenced by the relevant ADR; (2) is a resident of the United States for the purposes of the Ireland/United States Double Taxation Convention; (3) in the case of an individual holder, is not also resident or ordinarily resident in Ireland for Irish tax purposes; (4) in the case of a corporate holder, is not resident in Ireland for Irish tax purposes and is not ultimately controlled by persons resident in Ireland; and (5) is not engaged in any trade or business and does not perform independent personal services through a permanent establishment or fixed base in Ireland. |
● | “Relevant Territory” is defined as a country with which Ireland has a double tax treaty (which includes the United States), a country with which Ireland has signed a double taxation treaty which will come into force once all ratification procedures have been completed, or a member state of the European Union other than Ireland. |
● | who are ultimately controlled, whether directly or indirectly, by persons resident in a Relevant Territory and who are not ultimately controlled, whether directly or indirectly, by persons not resident in a Relevant Territory; or |
● | who are resident in a Relevant Territory and not controlled directly or indirectly by Irish residents; or |
● | whose principal class of shares or the principal class of shares of whose 75% or greater parents are substantially and regularly traded on a recognized stock exchange in a Relevant Territory; or which are wholly owned by two or more companies, each of whose principal class of shares are substantially and regularly traded on a recognized stock exchange in a Relevant Territory or on such other stock exchange as may be approved by the Minister for Finance. |
· | 0.5% on the first €12,012; |
· |
· | 4.75% on the next |
· | 8% on the aggregate income in excess of €70,044. |
● | an individual resident in a Relevant Territory and who are not resident or ordinarily resident in Ireland; or |
● | a corporation that is resident in a Relevant Territory and not controlled directly or indirectly by Irish residents; or |
● | a corporation that is ultimately controlled, whether directly or indirectly, by persons resident in a Relevant Territory and who are not ultimately controlled, whether directly or indirectly, by persons not resident in a Relevant Territory; or |
● | a corporation whose principal class of shares (or whose 75% or greater parent’s principal class of shares) are substantially and regularly traded on a recognized stock exchange in a Relevant Territory or on such other stock exchange as may be approved by the Minister for Finance; or |
● | a corporation that is wholly owned by two or more corporations each of whose principal class of shares are substantially and regularly traded on a recognized stock exchange in a Relevant Territory or on such other stock exchange as may be approved by the Minister for Finance; or |
● | otherwise entitled to an exemption from DWT. |
● | Excess distributions by us to a U.S. Holder would be taxed in a special way. “Excess distributions” are amounts received by a U.S. Holder with respect to our shares in any taxable year that exceed 125% of the average distributions received by such U.S. Holder from us in the shorter of either the three previous years or such U.S. Holder’s holding period for shares before the present taxable year. Excess distributions must be allocated ratably to each day that a U.S. Holder has held our shares. A U.S. Holder must include amounts allocated to the current taxable year in its gross income as ordinary income for that year. A U.S. Holder must pay tax on amounts allocated to each prior taxable year in which we were a PFIC at the highest rate in effect for that year on ordinary income and the tax is subject to an interest charge at the rate applicable to deficiencies for income tax. The preferential U.S. federal income tax rates for dividends and long-term capital gain of individual U.S. Holders (as well as certain trusts and estates) would not apply, and special rates would apply for calculating the amount of the foreign tax credit with respect to excess distributions. |
● | The entire amount of gain realized by a U.S. Holder upon the sale or other disposition of shares will also be treated as an excess distribution and will be subject to tax as described above. |
● | The tax basis in shares that were acquired from a decedent who was a U.S. Holder would not receive a step-up to fair market value as of the date of the decedent’s death but would instead be equal to the decedent’s basis, if lower than fair market value. |
Years ended | Years ended | |||||||||||||||||||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | |||||||||||||||||||||||||
Audit fees | $ | 1,803 | 73 | % | $ | 1,798 | 90 | % | $ | 2,187 | 91 | % | $ | 1,803 | 73 | % | ||||||||||||||||
Tax fees | 304 | 11 | % | 175 | 9 | % | 228 | 9 | % | 304 | 11 | % | ||||||||||||||||||||
All other fees | 269 | 16 | % | 20 | 1 | % | 3 | — | 269 | 16 | % | |||||||||||||||||||||
Total | $ | 2,376 | 100 | % | $ | 1,993 | 100 | % | $ | 2,418 | 100 | % | $ | 2,376 | 100 | % |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of a Publicly Announced Repurchased Plan | Approximate Dollar Value of Shares that may yet be Purchased Under the Plans or Programs | ||||||||||||
January 1-31, 2017 | — | $ | — | — | $ | 66.7 million | ||||||||||
February 2-28, 2017 | — | $ | — | — | $ | 66.7 million | ||||||||||
March 1-31, 2017 | 99,524 | $ | 12.95 | 99,524 | $ | 65.4 million | ||||||||||
April 1-30, 2017 | 371,316 | $ | 12.88 | 371,316 | $ | 60.6 million | ||||||||||
May 1-31, 2017 | 651,819 | $ | 12.84 | 651,819 | $ | 52.2 million | ||||||||||
June 1-30, 2017 | 958,812 | $ | 13.30 | 958,812 | $ | 39.4 million | ||||||||||
July 1-31, 2017 | 649,714 | $ | 13.75 | 649,714 | $ | 30.5 million | ||||||||||
August 1-31, 2017 | 572,866 | $ | 13.40 | 572,866 | $ | 22.8 million | ||||||||||
September 1-30, 2017 | 254,584 | $ | 13.75 | 254,584 | $ | 19.3 million | ||||||||||
October 1-31, 2017 | 114,284 | $ | 13.88 | 114,284 | $ | 17.7 million | ||||||||||
November 1-30, 2017 | 366,591 | $ | 13.66 | 366,591 | $ | 12.7 million | ||||||||||
December 1-31, 2017 | 235,059 | $ | 13.53 | 235,059 | $— | (1) |
Page | |
Report of Independent Registered Public Accounting Firm | F-3 |
Consolidated Balance Sheets of Fly Leasing Limited as of December 31, | F-4 |
Consolidated Statements of Income (Loss) of Fly Leasing Limited for the years ended December 31, 2018, 2017 | F-5 |
Consolidated Statements of Comprehensive Income (Loss) of Fly Leasing Limited for the years ended December 31, 2018, 2017 | F-6 |
Consolidated Statements of Shareholders’ Equity of Fly Leasing Limited for the years ended December 31, | F-7 |
Consolidated Statements of Cash Flows of Fly Leasing Limited for the years ended December 31, 2018, 2017 | F-8 |
Notes to Consolidated Financial Statements | F-10 |
Schedule I — Condensed Financial Information of Parent |
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 329,105 | $ | 517,964 | $ | 180,211 | $ | 329,105 | ||||||||
Restricted cash and cash equivalents | 127,710 | 94,123 | 100,869 | 127,710 | ||||||||||||
Rent receivables | 2,059 | 419 | 9,307 | 2,059 | ||||||||||||
Investment in unconsolidated subsidiary | 8,196 | 7,700 | ||||||||||||||
Investment in finance lease, net | 13,946 | 15,095 | 12,822 | 13,946 | ||||||||||||
Flight equipment held for sale, net | 259,644 | — | ||||||||||||||
Flight equipment held for operating lease, net | 2,961,744 | 2,693,821 | 3,228,018 | 2,961,744 | ||||||||||||
Maintenance rights, net | 131,299 | 101,969 | 298,207 | 131,299 | ||||||||||||
Deferred tax asset, net | 9,943 | 7,445 | 6,505 | 9,943 | ||||||||||||
Fair value of derivative assets | 2,643 | 1,905 | 5,929 | 2,643 | ||||||||||||
Other assets, net | 8,970 | 6,568 | 124,960 | 17,166 | ||||||||||||
Total assets | $ | 3,595,615 | $ | 3,447,009 | $ | 4,226,472 | $ | 3,595,615 | ||||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 18,305 | $ | 13,786 | $ | 23,146 | $ | 18,305 | ||||||||
Rentals received in advance | 14,968 | 13,123 | 21,322 | 14,968 | ||||||||||||
Payable to related parties | 2,084 | 5,042 | 4,462 | 2,084 | ||||||||||||
Security deposits | 49,689 | 42,495 | 60,097 | 49,689 | ||||||||||||
Maintenance payment liability | 244,151 | 182,571 | ||||||||||||||
Maintenance payment liability, net | 292,586 | 244,151 | ||||||||||||||
Unsecured borrowings, net | 615,922 | 691,390 | 617,664 | 615,922 | ||||||||||||
Secured borrowings, net | 2,029,675 | 1,831,985 | 2,379,869 | 2,029,675 | ||||||||||||
Deferred tax liability, net | 30,112 | 19,847 | 36,256 | 30,112 | ||||||||||||
Fair value of derivative liabilities | 7,344 | 13,281 | 8,558 | 7,344 | ||||||||||||
Other liabilities | 39,656 | 40,254 | 80,402 | 39,656 | ||||||||||||
Total liabilities | 3,051,906 | 2,853,774 | 3,524,362 | 3,051,906 | ||||||||||||
Shareholders’ equity | ||||||||||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 27,983,352 and 32,256,440 shares issued and outstanding at December 31, 2017 and 2016, respectively | 28 | 32 | ||||||||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 32,650,019 and 27,983,352 shares issued and outstanding at December 31, 2018 and 2017, respectively | 33 | 28 | ||||||||||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | — | — | — | — | ||||||||||||
Additional paid-in capital | 479,637 | 536,922 | 549,123 | 479,637 | ||||||||||||
Retained earnings | 68,624 | 66,026 | 154,347 | 68,624 | ||||||||||||
Accumulated other comprehensive loss, net | (4,580 | ) | (9,745 | ) | (1,393 | ) | (4,580 | ) | ||||||||
Total shareholders’ equity | 543,709 | 593,235 | 702,110 | 543,709 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 3,595,615 | $ | 3,447,009 | $ | 4,226,472 | $ | 3,595,615 |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Operating lease revenue | $ | 346,894 | $ | 313,582 | $ | 429,691 | $ | 399,514 | $ | 346,894 | $ | 313,582 | ||||||||||||
Finance lease revenue | 731 | 2,066 | 299 | 675 | 731 | 2,066 | ||||||||||||||||||
Equity earnings from unconsolidated subsidiary | 496 | 530 | 1,159 | |||||||||||||||||||||
Equity earnings (loss) from unconsolidated subsidiary | (54 | ) | 496 | 530 | ||||||||||||||||||||
Gain on sale of aircraft | 3,926 | 27,195 | 28,959 | 13,398 | 3,926 | 27,195 | ||||||||||||||||||
Interest and other income | 1,204 | 1,666 | 2,289 | 4,766 | 1,204 | 1,666 | ||||||||||||||||||
Total revenues | 353,251 | 345,039 | 462,397 | 418,299 | 353,251 | 345,039 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Depreciation | 133,227 | 120,452 | 159,732 | 144,084 | 133,227 | 120,452 | ||||||||||||||||||
Aircraft impairment | 22,000 | 96,122 | 66,093 | — | 22,000 | 96,122 | ||||||||||||||||||
Interest expense | 127,782 | 123,161 | 145,448 | 144,742 | 127,782 | 123,161 | ||||||||||||||||||
Selling, general and administrative | 30,671 | 30,077 | 33,674 | 31,185 | 30,671 | 30,077 | ||||||||||||||||||
Ineffective, dedesignated and terminated derivatives | (192 | ) | 91 | 4,134 | ||||||||||||||||||||
Loss (gain) on derivatives | (2,382 | ) | (192 | ) | 91 | |||||||||||||||||||
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 17,491 | 2,474 | 23,309 | 9,246 | ||||||||||||||||||
Maintenance and other costs | 2,524 | 2,279 | 7,628 | 2,547 | 2,524 | 2,279 | ||||||||||||||||||
Total expenses | 339,321 | 381,428 | 434,200 | 322,650 | 339,321 | 381,428 | ||||||||||||||||||
Net income (loss) before provision (benefit) for income taxes | 13,930 | (36,389 | ) | 28,197 | 95,649 | 13,930 | (36,389 | ) | ||||||||||||||||
Provision (benefit) for income taxes | 11,332 | (7,277 | ) | 5,399 | 9,926 | 11,332 | (7,277 | ) | ||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | $ | 85,723 | $ | 2,598 | $ | (29,112 | ) | ||||||||||
Weighted average number of shares: | ||||||||||||||||||||||||
Basic | 30,307,357 | 33,239,001 | 41,222,690 | 29,744,083 | 30,307,357 | 33,239,001 | ||||||||||||||||||
Diluted | 30,353,425 | 33,239,001 | 41,315,149 | 29,783,904 | 30,353,425 | 33,239,001 | ||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||
Basic | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) | ||||||||||
Diluted | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) | ||||||||||
Dividends declared and paid per share | $ | — | $ | — | $ | 1.00 |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | $ | 85,723 | $ | 2,598 | $ | (29,112 | ) | ||||||||||
Other components of comprehensive income (loss), net of tax: | ||||||||||||||||||||||||
Change in fair value of derivatives, net of deferred tax (1) | 3,926 | 5,036 | 158 | (530 | ) | 3,926 | 5,036 | |||||||||||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax (2) | — | (10 | ) | (130 | ) | — | — | (10 | ) | |||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax (3) | 1,239 | 729 | 1,563 | 3,717 | 1,239 | 729 | ||||||||||||||||||
Comprehensive income (loss) | $ | 7,763 | $ | (23,357 | ) | $ | 24,389 | $ | 88,910 | $ | 7,763 | $ | (23,357 | ) |
(1) | The associated deferred tax benefit for the year ended December 31, 2018 was $0.7 million. The associated deferred tax expense was |
(2) | The associated deferred tax benefit was $1,000 |
(3) | The associated deferred tax expense was $0.3 million, $0.2 million |
Manager Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, net | Total Shareholders’ Equity | Manager Shares | Common Shares | Additional | Accumulated Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Paid-in Capital | Retained Earnings | Comprehensive Loss, net | Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2014 | 100 | $ | — | 41,432,998 | $ | 41 | $ | 658,522 | $ | 114,782 | $ | (17,091 | ) | $ | 756,254 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to shareholders | — | — | — | — | — | (41,388 | ) | — | (41,388 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividend equivalents | — | — | — | — | — | (1,054 | ) | — | (1,054 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants | — | — | 36,075 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program | — | — | (421,329 | ) | — | (5,529 | ) | — | — | (5,529 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer | — | — | (5,376,344 | ) | (5 | ) | (75,898 | ) | — | — | (75,903 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 195 | — | — | 195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 22,798 | — | 22,798 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax of $0.3 million (1) | — | — | — | — | — | — | 158 | 158 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax of $19,000 (1) | — | — | — | — | — | — | (130 | ) | (130 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax of $0.2 million (1) | — | — | — | — | — | — | 1,563 | 1,563 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2015 | 100 | $ | — | 35,671,400 | $ | 36 | $ | 577,290 | $ | 95,138 | $ | (15,500 | ) | $ | 656,964 | 100 | $ | — | 35,671,400 | $ | 36 | $ | 577,290 | $ | 95,138 | $ | (15,500 | ) | $ | 656,964 | ||||||||||||||||||||||||||||||||||
Shares repurchased | — | — | (3,414,960 | ) | (4 | ) | (40,368 | ) | — | — | (40,372 | ) | — | — | (3,414,960 | ) | (4 | ) | (40,368 | ) | — | — | (40,372 | ) | ||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (29,112 | ) | — | (29,112 | ) | — | — | — | — | — | (29,112 | ) | — | (29,112 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax of $0.7 million (1) | — | — | — | — | — | — | 5,036 | 5,036 | — | — | — | — | — | — | 5,036 | 5,036 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax of $1,000 (1) | — | — | — | — | — | — | (10 | ) | (10 | ) | — | — | — | — | — | — | (10 | ) | (10 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax of $0.1 million (1) | — | — | — | — | — | — | 729 | 729 | — | — | — | — | — | — | 729 | 729 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2016 | 100 | $ | — | 32,256,440 | $ | 32 | $ | 536,922 | $ | 66,026 | $ | (9,745 | ) | $ | 593,235 | 100 | $ | — | 32,256,440 | $ | 32 | $ | 536,922 | $ | 66,026 | $ | (9,745 | ) | $ | 593,235 | ||||||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised | — | — | 1,481 | — | — | — | — | — | — | — | 1,481 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Shares repurchased | — | — | (4,274,569 | ) | (4 | ) | (57,285 | ) | — | — | (57,289 | ) | — | — | (4,274,569 | ) | (4 | ) | (57,285 | ) | — | — | (57,289 | ) | ||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 2,598 | — | 2,598 | — | — | — | — | — | 2,598 | — | 2,598 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax of $0.6 million (1) | — | — | — | — | — | — | 3,926 | 3,926 | — | — | — | — | — | — | 3,926 | 3,926 | ||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax of $0.2 million (1) | — | — | — | — | — | — | 1,239 | 1,239 | — | — | — | — | — | — | 1,239 | 1,239 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2017 | 100 | $ | — | 27,983,352 | $ | 28 | $ | 479,637 | $ | 68,624 | $ | (4,580 | ) | $ | 543,709 | 100 | $ | — | 27,983,352 | $ | 28 | $ | 479,637 | $ | 68,624 | $ | (4,580 | ) | $ | 543,709 | ||||||||||||||||||||||||||||||||||
Shares issued in connection with AirAsia Transactions (2) | — | — | 4,666,667 | 5 | 69,486 | — | — | 69,491 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 85,723 | — | 85,723 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax of $0.7 million (1) | — | — | — | — | — | — | (530 | ) | (530 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax of $0.3 million (1) | — | — | — | — | — | — | 3,717 | 3,717 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance December 31, 2018 | 100 | $ | — | 32,650,019 | $ | 33 | $ | 549,123 | $ | 154,347 | $ | (1,393 | ) | $ | 702,110 |
(1) | See Note |
(2) | See Note 14 to Notes to Consolidated Financial Statements. |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | $ | 85,723 | $ | 2,598 | $ | (29,112 | ) | ||||||||||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ||||||||||||||||||||||||
Equity earnings from unconsolidated subsidiary | (496 | ) | (530 | ) | (1,159 | ) | ||||||||||||||||||
Finance lease revenue | (731 | ) | (2,066 | ) | (299 | ) | (675 | ) | (731 | ) | (2,066 | ) | ||||||||||||
Equity in (earnings) loss from unconsolidated subsidiary | 54 | (496 | ) | (530 | ) | |||||||||||||||||||
Gain on sale of aircraft | (3,926 | ) | (27,195 | ) | (28,959 | ) | (13,398 | ) | (3,926 | ) | (27,195 | ) | ||||||||||||
Depreciation | 133,227 | 120,452 | 159,732 | 144,084 | 133,227 | 120,452 | ||||||||||||||||||
Aircraft impairment | 22,000 | 96,122 | 66,093 | — | 22,000 | 96,122 | ||||||||||||||||||
Amortization of debt discounts and debt issuance costs | 7,955 | 9,375 | 11,922 | 9,455 | 7,955 | 9,375 | ||||||||||||||||||
Amortization of lease incentives | 7,668 | 8,898 | 20,527 | 9,738 | 7,668 | 8,898 | ||||||||||||||||||
Amortization of lease premiums, discounts and other | 412 | 388 | 2,046 | |||||||||||||||||||||
Amortization of GAAM acquisition fair value adjustments | 1,223 | 1,621 | 3,650 | |||||||||||||||||||||
Amortization of lease premiums, discounts and other items | 432 | 412 | 388 | |||||||||||||||||||||
Amortization of acquisition fair value adjustments | 1,239 | 1,223 | 1,621 | |||||||||||||||||||||
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 17,491 | 2,474 | 23,309 | 9,246 | ||||||||||||||||||
Share-based compensation | — | — | 195 | |||||||||||||||||||||
Unrealized foreign exchange (gain) loss | 2,305 | (437 | ) | (1,247 | ) | (563 | ) | 2,305 | (437 | ) | ||||||||||||||
Provision (benefit) for deferred income taxes | 5,178 | (9,158 | ) | 4,919 | 9,864 | 5,178 | (9,158 | ) | ||||||||||||||||
(Gain) loss on derivative instruments | (478 | ) | 76 | 4,134 | (1,269 | ) | (478 | ) | 76 | |||||||||||||||
Security deposits and maintenance payment liability recognized into earnings | (16,268 | ) | (3,450 | ) | (48,658 | ) | (15,597 | ) | (16,268 | ) | (3,450 | ) | ||||||||||||
Security deposits and maintenance payment claims applied towards operating lease revenue | — | (684 | ) | — | — | — | (684 | ) | ||||||||||||||||
Distributions from unconsolidated subsidiary | 2,131 | — | — | |||||||||||||||||||||
Cash receipts from maintenance rights | — | 9,513 | — | 3,013 | — | 9,513 | ||||||||||||||||||
Maintenance rights recognized into earnings | 465 | — | — | — | 465 | — | ||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Rent receivables | (4,251 | ) | (1,034 | ) | 6,814 | (12,866 | ) | (4,251 | ) | (1,034 | ) | |||||||||||||
Other assets | (2,599 | ) | (1,134 | ) | 137 | (4,119 | ) | (2,599 | ) | (1,134 | ) | |||||||||||||
Payable to related parties | (10,126 | ) | (17,163 | ) | (19,407 | ) | 2,378 | (10,126 | ) | (17,163 | ) | |||||||||||||
Accounts payable, accrued liabilities and other liabilities | 11,588 | (10,964 | ) | (2,183 | ) | 18,982 | 11,588 | (10,964 | ) | |||||||||||||||
Net cash flows provided by operating activities | 179,053 | 152,764 | 218,546 | 241,080 | 179,053 | 152,764 | ||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||||
Investment in unconsolidated subsidiary | — | — | (2,009 | ) | ||||||||||||||||||||
Distributions from unconsolidated subsidiary | 3,103 | — | — | |||||||||||||||||||||
Rent received from finance lease | 1,880 | 2,970 | 424 | 1,800 | 1,880 | 2,970 | ||||||||||||||||||
Investment in finance lease | — | — | (33,596 | ) | ||||||||||||||||||||
Investment in Horizon I Limited equity certificates | (5,747 | ) | — | — | ||||||||||||||||||||
Purchase of flight equipment | (434,122 | ) | (552,166 | ) | (567,523 | ) | (934,481 | ) | (434,122 | ) | (552,166 | ) | ||||||||||||
Proceeds from sale of aircraft, net | 21,750 | 430,867 | 1,110,046 | 177,702 | 21,750 | 430,867 | ||||||||||||||||||
Purchase price allocated to Portfolio B orderbook value | (80,450 | ) | — | — | ||||||||||||||||||||
Payments for aircraft improvement | (7,357 | ) | (2,230 | ) | (8,196 | ) | (6,779 | ) | (7,357 | ) | (2,230 | ) | ||||||||||||
Payments for lessor maintenance obligations | (12,564 | ) | (2,712 | ) | (18,609 | ) | (8,601 | ) | (12,564 | ) | (2,712 | ) | ||||||||||||
Net cash flows (used in) provided by investing activities | (430,413 | ) | (123,271 | ) | 480,537 | |||||||||||||||||||
Net cash flows used in investing activities | (853,453 | ) | (430,413 | ) | (123,271 | ) |
Years ended | ||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||||
Security deposits received | 7,196 | 920 | 13,914 | 15,042 | 7,196 | 920 | ||||||||||||||||||
Security deposits returned | (3,554 | ) | (7,438 | ) | (7,788 | ) | (8,716 | ) | (3,554 | ) | (7,438 | ) | ||||||||||||
Maintenance payment liability receipts | 75,765 | 71,514 | 84,491 | 84,102 | 75,765 | 71,514 | ||||||||||||||||||
Maintenance payment liability disbursements | (14,303 | ) | (10,951 | ) | (38,768 | ) | (15,495 | ) | (14,303 | ) | (10,951 | ) | ||||||||||||
Net swap termination payments | — | (709 | ) | (3,737 | ) | 1,801 | — | (709 | ) | |||||||||||||||
Debt modification and extinguishment costs | (17,396 | ) | (3,153 | ) | (3,623 | ) | 301 | (17,396 | ) | (3,153 | ) | |||||||||||||
Debt issuance costs | (1,464 | ) | (2,552 | ) | (933 | ) | (3,619 | ) | (1,464 | ) | (2,552 | ) | ||||||||||||
Proceeds from unsecured borrowings | 295,150 | — | — | — | 295,150 | — | ||||||||||||||||||
Repayment of unsecured borrowings | (375,000 | ) | — | — | — | (375,000 | ) | — | ||||||||||||||||
Proceeds from secured borrowings | 513,459 | 572,719 | 147,276 | 826,396 | 513,459 | 572,719 | ||||||||||||||||||
Repayment of secured borrowings | (326,909 | ) | (448,346 | ) | (791,385 | ) | (482,703 | ) | (326,909 | ) | (448,346 | ) | ||||||||||||
Net proceeds from issuance of shares | 19,624 | — | — | |||||||||||||||||||||
Shares repurchased | (57,286 | ) | (40,257 | ) | (81,432 | ) | — | (57,286 | ) | (40,257 | ) | |||||||||||||
Dividends paid | — | — | (41,388 | ) | ||||||||||||||||||||
Dividend equivalents | — | — | (1,054 | ) | ||||||||||||||||||||
Net cash flows provided by (used in) financing activities | 95,658 | 131,747 | (724,427 | ) | ||||||||||||||||||||
Net cash flows provided by financing activities | 436,733 | 95,658 | 131,747 | |||||||||||||||||||||
Effect of exchange rate changes on unrestricted and restricted cash and cash equivalents | 430 | (84 | ) | (424 | ) | (95 | ) | 430 | (84 | ) | ||||||||||||||
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | (155,272 | ) | 161,156 | (25,768 | ) | (175,735 | ) | (155,272 | ) | 161,156 | ||||||||||||||
Unrestricted and restricted cash and cash equivalents at beginning of period | 612,087 | 450,931 | 476,699 | 456,815 | 612,087 | 450,931 | ||||||||||||||||||
Unrestricted and restricted cash and cash equivalents at end of period | $ | 456,815 | $ | 612,087 | $ | 450,931 | $ | 281,080 | $ | 456,815 | $ | 612,087 | ||||||||||||
Reconciliation to Consolidated Balance Sheets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 329,105 | $ | 517,964 | $ | 275,998 | $ | 180,211 | $ | 329,105 | $ | 517,964 | ||||||||||||
Restricted cash and cash equivalents | 127,710 | 94,123 | 174,933 | 100,869 | 127,710 | 94,123 | ||||||||||||||||||
Unrestricted and restricted cash and cash equivalents | $ | 456,815 | $ | 612,087 | $ | 450,931 | $ | 281,080 | $ | 456,815 | $ | 612,087 |
1. | ORGANIZATION |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
● | Flight equipment where original manufacturer’s prices are not relevant due to plane modifications and conversions. |
● | Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence. |
● | The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture. |
● | Flight equipment that management believes will be disposed of prior to the end of its estimated useful life. |
● | Operating lease revenue. The Company receives lease revenue from flight equipment under operating leases. Rental income from aircraft and aircraft equipment is recognized on a straight-line basis over the initial term of the respective lease. The operating lease agreements generally do not provide for purchase options, however, the leases may allow the lessee to exercise an option to extend the lease for an additional term. Contingent rents are recognized as revenue when the contingency is resolved. Revenue is not recognized when collection is not reasonably assured. |
● | End of lease income. The amount of end of lease income the Company recognizes in any reporting period is inherently volatile and depends upon a number of factors, including the timing of both scheduled and unscheduled lease expiries and the timing of maintenance performed on the aircraft or aircraft equipment by the lessee, among others. |
● | Lease incentives. The Company’s leases may contain provisions which require it to contribute a portion of the lessee’s costs for heavy maintenance, overhaul or replacement of certain high-value components. The Company accounts for these expected payments as lease incentives, which are amortized as a reduction of lease revenue over the life of the lease. |
● | Lease premiums and lease discounts. Lease premiums and lease discounts are amortized into operating lease revenue over the lease term. Amortization of lease premiums decreases rental revenue and amortization of lease discounts increases rental revenue. |
● | Finance lease income. Revenue from finance lease is recognized using the interest method to produce a level yield over the life of the finance lease. |
· | The timing and pattern of transfer for the non-lease component and the associated lease component are the same; and |
· | The stand-alone lease component would be classified as an operating lease if accounted for separately. |
· | The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; |
· | The policy for timing of transfers between levels; and |
· | The valuation processes for Level 3 fair value measurements. |
· | The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements at the end of the reporting period; and |
· | The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. |
3. | SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||
Cash paid during the year for: | ||||||||||||||||||||||||
Interest | $ | 113,710 | $ | 110,351 | $ | 132,780 | $ | 126,648 | $ | 113,710 | $ | 110,351 | ||||||||||||
Taxes | 2,155 | 460 | 384 | 4,163 | 2,155 | 460 | ||||||||||||||||||
Noncash Activities: | ||||||||||||||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 2,045 | — | 3,292 | |||||||||||||||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance | 68 | — | 2,523 | |||||||||||||||||||||
Other liabilities applied to maintenance payment liability and rent receivables | 676 | 2,550 | 240 | |||||||||||||||||||||
Security deposits applied to rent receivables, other assets, maintenance payment liability and rentals received in advance | 1 | 2,045 | — | |||||||||||||||||||||
Maintenance payment liability applied to rent receivables, maintenance rights, rentals received in advance and other liabilities | 25,837 | 68 | — | |||||||||||||||||||||
Other liabilities applied to maintenance payment liability, security deposits and rent receivables | 5,520 | 676 | 2,550 | |||||||||||||||||||||
Noncash investing activities: | ||||||||||||||||||||||||
Aircraft improvement | 192 | 5,245 | 1,587 | 10,870 | 192 | 5,245 | ||||||||||||||||||
Noncash activities in connection with purchase of aircraft | 3,979 | 6,388 | 19,382 | |||||||||||||||||||||
Noncash activities in connection with sale of aircraft | — | 78,722 | 93,819 | |||||||||||||||||||||
Noncash activities in connection with purchase of flight equipment: | ||||||||||||||||||||||||
Security deposits and maintenance payment liabilities assumed | 29,860 | — | — | |||||||||||||||||||||
Shares issued | 49,867 | — | — | |||||||||||||||||||||
Other | — | 3,979 | 6,388 | |||||||||||||||||||||
Noncash activities in connection with sale of flight equipment | 2,648 | — | 78,722 |
4. | INVESTMENT IN FINANCE LEASE |
December 31, 2017 | December 31, 2016 | December 31, 2018 | December 31, 2017 | |||||||||||||
Total minimum lease payments receivable | $ | 13,200 | $ | 15,080 | $ | 11,400 | $ | 13,200 | ||||||||
Estimated unguaranteed residual value of leased asset | 4,227 | 4,227 | 4,227 | 4,227 | ||||||||||||
Unearned finance income | (3,481 | ) | (4,212 | ) | (2,805 | ) | (3,481 | ) | ||||||||
Net Investment in Finance Lease | $ | 13,946 | $ | 15,095 | $ | 12,822 | $ | 13,946 |
Year ending December 31, | (Dollars in thousands) | (Dollars in thousands) | ||||||
2018 | $ | 1,800 | ||||||
2019 | 1,800 | $ | 1,800 | |||||
2020 | 1,800 | 1,800 | ||||||
2021 | 1,800 | 1,800 | ||||||
2022 | 1,800 | 1,800 | ||||||
2023 | 1,800 | |||||||
Thereafter | 4,200 | 2,400 | ||||||
Future minimum rental payments under finance lease | $ | 13,200 | $ | 11,400 |
5. | FLIGHT EQUIPMENT HELD FOR SALE |
6. | FLIGHT EQUIPMENT HELD FOR OPERATING LEASE |
December 31, 2018 | ||||
Flight equipment held for sale, net | $ | 163,236 | ||
Flight equipment held for operating lease, net | 605,058 | |||
Maintenance rights | 189,864 | |||
Other assets, net (Portfolio B orderbook value) | 103,951 | |||
Security deposits | 14,477 | |||
Maintenance payment liability, net | 22,743 | |||
Other liabilities (lease discounts) | 25,539 |
December 31, 2017 | December 31, 2016 | December 31, 2018 | December 31, 2017 | |||||||||||||
Cost | $ | 3,574,202 | $ | 3,180,160 | $ | 3,900,938 | $ | 3,574,202 | ||||||||
Accumulated depreciation | (612,458 | ) | (486,339 | ) | (672,920 | ) | (612,458 | ) | ||||||||
Flight equipment held for operating lease, net | $ | 2,961,744 | $ | 2,693,821 | $ | 3,228,018 | $ | 2,961,744 |
December 31, 2017 | December 31, 2016 | December 31, 2018 | December 31, 2017 | |||||||||||||||||||||||||||||
Europe: | ||||||||||||||||||||||||||||||||
United Kingdom | $ | 169,763 | 5 | % | $ | 128,116 | 4 | % | ||||||||||||||||||||||||
Spain | $ | 175,593 | 6 | % | $ | 57,845 | 2 | % | 168,534 | 5 | % | 175,593 | 6 | % | ||||||||||||||||||
Turkey | 135,764 | 5 | % | 142,787 | 5 | % | 22,843 | 1 | % | 135,764 | 5 | % | ||||||||||||||||||||
United Kingdom | 128,116 | 4 | % | 143,560 | 5 | % | ||||||||||||||||||||||||||
Germany | — | — | 98,483 | 4 | % | |||||||||||||||||||||||||||
Russia | 16,332 | — | 17,582 | 1 | % | |||||||||||||||||||||||||||
Other | 235,013 | 8 | % | 179,155 | 7 | % | 242,711 | 8 | % | 251,345 | 8 | % | ||||||||||||||||||||
Europe — Total | 690,818 | 23 | % | 639,412 | 24 | % | 603,851 | 19 | % | 690,818 | 23 | % | ||||||||||||||||||||
Asia and South Pacific: | ||||||||||||||||||||||||||||||||
India | 601,072 | 20 | % | 574,853 | 21 | % | 690,193 | 21 | % | 601,072 | 20 | % | ||||||||||||||||||||
Philippines | 268,504 | 9 | % | 279,031 | 10 | % | 276,237 | 9 | % | 268,504 | 9 | % | ||||||||||||||||||||
Indonesia | 204,840 | 7 | % | 62,921 | 2 | % | 296,390 | 9 | % | 204,840 | 7 | % | ||||||||||||||||||||
Malaysia | 394,441 | 12 | % | 76,706 | 3 | % | ||||||||||||||||||||||||||
China | 186,083 | 6 | % | 194,774 | 7 | % | 177,393 | 5 | % | 186,083 | 6 | % | ||||||||||||||||||||
Other | 152,371 | 5 | % | 153,323 | 7 | % | 161,330 | 6 | % | 75,665 | 2 | % | ||||||||||||||||||||
Asia and South Pacific — Total | 1,412,870 | 47 | % | 1,264,902 | 47 | % | 1,995,984 | 62 | % | 1,412,870 | 47 | % | ||||||||||||||||||||
Mexico, South and Central America: | ||||||||||||||||||||||||||||||||
Chile | 83,097 | 3 | % | 86,251 | 3 | % | ||||||||||||||||||||||||||
Other | 79,177 | 3 | % | 83,368 | 3 | % | ||||||||||||||||||||||||||
Mexico, South and Central America — Total | 162,274 | 6 | % | 169,619 | 6 | % | 58,202 | 2 | % | 162,274 | 6 | % | ||||||||||||||||||||
North America: | ||||||||||||||||||||||||||||||||
United States | 147,580 | 5 | % | 156,472 | 6 | % | 126,498 | 4 | % | 147,580 | 5 | % | ||||||||||||||||||||
Other | 52,182 | 2 | % | 55,044 | 2 | % | 49,320 | 1 | % | 52,182 | 2 | % | ||||||||||||||||||||
North America — Total | 199,762 | 7 | % | 211,516 | 8 | % | 175,818 | 5 | % | 199,762 | 7 | % | ||||||||||||||||||||
Middle East and Africa: | ||||||||||||||||||||||||||||||||
Ethiopia | 322,896 | 11 | % | 332,817 | 12 | % | 312,977 | 10 | % | 322,896 | 11 | % | ||||||||||||||||||||
Other | 116,273 | 4 | % | 75,555 | 3 | % | 81,186 | 2 | % | 116,273 | 4 | % | ||||||||||||||||||||
Middle East and Africa — Total | 439,169 | 15 | % | 408,372 | 15 | % | 394,163 | 12 | % | 439,169 | 15 | % | ||||||||||||||||||||
Off-Lease — Total | 56,851 | 2 | % | — | — | — | — | 56,851 | 2 | % | ||||||||||||||||||||||
Total flight equipment held for operating lease, net | $ | 2,961,744 | 100 | % | $ | 2,693,821 | 100 | % | $ | 3,228,018 | 100 | % | $ | 2,961,744 | 100 | % |
Years ended | Years ended | |||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||||||||||||||||
Europe: | ||||||||||||||||||||||||||||||||||||||||||||||||
United Kingdom | $ | 31,259 | 8 | % | $ | 29,182 | 8 | % | $ | 34,498 | 11 | % | ||||||||||||||||||||||||||||||||||||
Spain | $ | 11,199 | 3 | % | $ | 5,361 | 2 | % | $ | 9,191 | 2 | % | 17,267 | 4 | % | 11,199 | 3 | % | 5,361 | 2 | % | |||||||||||||||||||||||||||
Turkey | 17,103 | 5 | % | 24,593 | 8 | % | 29,847 | 7 | % | 12,114 | 3 | % | 17,103 | 5 | % | 24,593 | 8 | % | ||||||||||||||||||||||||||||||
United Kingdom | 29,182 | 8 | % | 34,498 | 11 | % | 50,742 | 12 | % | |||||||||||||||||||||||||||||||||||||||
Germany | 26,457 | 8 | % | 13,836 | 4 | % | 18,201 | 4 | % | — | — | 26,457 | 8 | % | 13,836 | 4 | % | |||||||||||||||||||||||||||||||
Russia | 1,927 | 1 | % | 3,141 | 1 | % | 24,095 | 6 | % | |||||||||||||||||||||||||||||||||||||||
Other | 27,253 | 8 | % | 25,253 | 8 | % | 46,480 | 11 | % | 31,995 | 8 | % | 29,180 | 9 | % | 28,394 | 9 | % | ||||||||||||||||||||||||||||||
Europe — Total | 113,121 | 33 | % | 106,682 | 34 | % | 178,556 | 42 | % | 92,635 | 23 | % | 113,121 | 33 | % | 106,682 | 34 | % | ||||||||||||||||||||||||||||||
Asia and South Pacific: | ||||||||||||||||||||||||||||||||||||||||||||||||
India | 64,381 | 18 | % | 39,640 | 13 | % | 19,572 | 4 | % | 87,492 | 22 | % | 64,381 | 18 | % | 39,640 | 13 | % | ||||||||||||||||||||||||||||||
Philippines | 29,825 | 9 | % | 29,129 | 9 | % | 38,677 | 9 | % | 35,009 | 9 | % | 29,825 | 9 | % | 29,129 | 9 | % | ||||||||||||||||||||||||||||||
Indonesia | 16,308 | 5 | % | 8,320 | 3 | % | 7,915 | 2 | % | 32,336 | 8 | % | 16,308 | 5 | % | 8,320 | 3 | % | ||||||||||||||||||||||||||||||
Malaysia | 26,748 | 7 | % | 8,767 | 3 | % | 2,647 | 1 | % | |||||||||||||||||||||||||||||||||||||||
China | 22,611 | 6 | % | 23,882 | 8 | % | 37,943 | 9 | % | 21,103 | 5 | % | 22,611 | 6 | % | 23,882 | 8 | % | ||||||||||||||||||||||||||||||
Other | 19,263 | 6 | % | 18,967 | 5 | % | 31,141 | 7 | % | 18,756 | 4 | % | 10,496 | 3 | % | 16,320 | 4 | % | ||||||||||||||||||||||||||||||
Asia and South Pacific — Total | 152,388 | 44 | % | 119,938 | 38 | % | 135,248 | 31 | % | 221,444 | 55 | % | 152,388 | 44 | % | 119,938 | 38 | % | ||||||||||||||||||||||||||||||
Mexico, South and Central America: | ||||||||||||||||||||||||||||||||||||||||||||||||
Chile | 8,939 | 3 | % | 8,939 | 3 | % | 24,336 | 6 | % | |||||||||||||||||||||||||||||||||||||||
Other | 8,626 | 2 | % | 8,768 | 3 | % | 16,732 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Mexico, South and Central America — Total | 17,565 | 5 | % | 17,707 | 6 | % | 41,068 | 10 | % | 11,415 | 3 | % | 17,565 | 5 | % | 17,707 | 6 | % | ||||||||||||||||||||||||||||||
North America: | ||||||||||||||||||||||||||||||||||||||||||||||||
United States | 17,647 | 5 | % | 24,591 | 8 | % | 37,316 | 9 | % | 20,147 | 5 | % | 17,647 | 5 | % | 24,591 | 8 | % | ||||||||||||||||||||||||||||||
Other | 6,237 | 2 | % | 6,223 | 2 | % | 6,380 | 1 | % | 6,242 | 2 | % | 6,237 | 2 | % | 6,223 | 2 | % | ||||||||||||||||||||||||||||||
North America — Total | 23,884 | 7 | % | 30,814 | 10 | % | 43,696 | 10 | % | 26,389 | 7 | % | 23,884 | 7 | % | 30,814 | 10 | % | ||||||||||||||||||||||||||||||
Middle East and Africa: | ||||||||||||||||||||||||||||||||||||||||||||||||
Ethiopia | 30,018 | 9 | % | 30,084 | 10 | % | 22,808 | 5 | % | 30,019 | 8 | % | 30,018 | 9 | % | 30,084 | 10 | % | ||||||||||||||||||||||||||||||
Other | 9,918 | 2 | % | 8,357 | 2 | % | 8,315 | 2 | % | 17,612 | 4 | % | 9,918 | 2 | % | 8,357 | 2 | % | ||||||||||||||||||||||||||||||
Middle East and Africa — Total | 39,936 | 11 | % | 38,441 | 12 | % | 31,123 | 7 | % | 47,631 | 12 | % | 39,936 | 11 | % | 38,441 | 12 | % | ||||||||||||||||||||||||||||||
Total Operating Lease Revenue | $ | 346,894 | 100 | % | $ | 313,582 | 100 | % | $ | 429,691 | 100 | % | $ | 399,514 | 100 | % | $ | 346,894 | 100 | % | $ | 313,582 | 100 | % |
Year ending December 31, | (Dollars in thousands) | (Dollars in thousands) | ||||||
2018 | $ | 355,172 | ||||||
2019 | 320,670 | $ | 403,535 | |||||
2020 | 280,506 | 372,432 | ||||||
2021 | 245,208 | 323,232 | ||||||
2022 | 209,542 | 272,427 | ||||||
2023 | 227,535 | |||||||
Thereafter | 734,445 | 661,006 | ||||||
Future minimum rental payments under operating leases | $ | 2,145,543 | $ | 2,260,167 |
Year ending December 31, | ||||||||
2018 | $ | 9,137 | ||||||
2019 | 8,449 | $ | 7,432 | |||||
2020 | 5,849 | 4,652 | ||||||
2021 | 3,594 | 3,243 | ||||||
2022 | 2,218 | 2,744 | ||||||
2023 | 1,543 | |||||||
Thereafter | 1,044 | 939 | ||||||
Future amortization of lease incentives | $ | 30,291 | $ | 20,553 |
7. | MAINTENANCE RIGHTS |
December 31, 2017 | December 31, 2016 | December 31, 2018 | December 31, 2017 | |||||||||||||
Maintenance rights, net beginning balance | $ | 101,969 | $ | 94,493 | $ | 131,299 | $ | 101,969 | ||||||||
Acquisitions | 25,033 | 28,412 | 189,864 | 25,033 | ||||||||||||
Capitalized to aircraft improvements | (192 | ) | (5,245 | ) | (9,240 | ) | (192 | ) | ||||||||
Maintenance rights recognized into earnings | (465 | ) | — | |||||||||||||
Maintenance rights settled with retained maintenance payments | (2,369 | ) | (465 | ) | ||||||||||||
Cash receipts from maintenance rights | — | (9,513 | ) | (3,013 | ) | — | ||||||||||
Maintenance rights associated with aircraft sold | 4,954 | (6,178 | ) | (8,334 | ) | 4,954 | ||||||||||
Maintenance rights, net at end of year | $ | 131,299 | $ | 101,969 | ||||||||||||
Maintenance rights, net ending balance | $ | 298,207 | $ | 131,299 |
8. |
December 31, 2018 | December 31, 2017 | |||||||
Value added tax receivables, net | $ | 6,016 | $ | 2,915 | ||||
Investment in unconsolidated subsidiary | 2,908 | 8,196 | ||||||
Portfolio B orderbook value (see Note 6) | 103,951 | — | ||||||
Horizon I Limited equity certificates | 5,747 | — | ||||||
Other assets | 6,338 | 6,055 | ||||||
Total other assets | $ | 124,960 | $ | 17,166 |
December 31, 2017 | December 31, 2016 | |||||||
Lease costs, net | $ | 2,045 | $ | 1,730 | ||||
Value added tax and general sales tax receivables, net | 2,915 | 2,994 | ||||||
Other assets | 4,010 | 1,844 | ||||||
Total other assets | $ | 8,970 | $ | 6,568 |
UNSECURED BORROWINGS |
Balance as of | Balance as of | |||||||||||||||
December 31, 2017 | December 31, 2016 | December 31, 2018 | December 31, 2017 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Outstanding principal balance: | ||||||||||||||||
2020 Notes | $ | — | $ | 375,000 | ||||||||||||
2021 Notes | 325,000 | 325,000 | $ | 325,000 | $ | 325,000 | ||||||||||
2024 Notes | 300,000 | — | 300,000 | 300,000 | ||||||||||||
Total outstanding principal balance | 625,000 | 700,000 | 625,000 | 625,000 | ||||||||||||
Unamortized debt discounts and loan costs | (9,078 | ) | (8,610 | ) | (7,336 | ) | (9,078 | ) | ||||||||
Unsecured borrowings, net | $ | 615,922 | $ | 691,390 | $ | 617,664 | $ | 615,922 |
If redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | Redemption Price | ||||||
2017 | 104.781 | % | ||||||
2018 | 103.188 | % | 103.188 | % | ||||
2019 | 101.594 | % | 101.594 | % | ||||
2020 and thereafter | 100.000 | % | 100.000 | % |
If redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | |||
2020 | 102.625 | % | ||
2021 | 101.313 | % | ||
2022 and thereafter | 100.000 | % |
SECURED BORROWINGS |
Outstanding principal balance as of December 31, | Weighted average interest rate(1) as of December 31, | Outstanding principal balance as of December 31, | Weighted average interest rate(1) as of December 31, | ||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | Maturity date | 2018(2) | 2017(2) | 2018 | 2017 | Maturity date | ||||||||||||||||||||||||||
Securitization Notes | $ | 101,551 | $ | 139,741 | 3.06 | % | 3.36 | % | November 2033 | $ | 85,584 | $ | 101,551 | 3.08 | % | 3.06 | % | November 2033 | |||||||||||||||||
Nord LB Facility | 153,176 | 171,509 | 4.47 | % | 4.14 | % | November 2018 | 108,882 | 153,176 | 4.29 | % | 4.47 | % | January 2020 | |||||||||||||||||||||
CBA Facility | 49,080 | 56,146 | 5.53 | % | 5.45 | % | October 2020 | — | 49,080 | — | 5.53 | % | N/A | ||||||||||||||||||||||
Term Loan | 431,271 | 404,016 | 4.25 | % | 4.41 | % | February 2023 | 407,768 | 431,271 | 5.17 | % | 4.25 | % | February 2023 | |||||||||||||||||||||
Magellan Acquisition Limited Facility | 331,768 | — | 3.15 | % | — | December 2025 | 305,226 | 331,768 | 4.18 | % | 3.15 | % | December 2025 | ||||||||||||||||||||||
Fly Acquisition III Facility | 86,520 | 113,045 | 3.41 | % | 2.88 | % | February 2022 | 190,457 | 86,520 | 4.10 | % | 3.41 | % | February 2022 | |||||||||||||||||||||
Fly Aladdin Acquisition Facility | 467,179 | — | 4.59 | % | — | June 2020 – June 2023 | |||||||||||||||||||||||||||||
Fly Aladdin Engine Funding Facility | 43,829 | — | 4.95 | % | — | December 2021 – April 2022 | |||||||||||||||||||||||||||||
Other Aircraft Secured Borrowings | 905,525 | 980,967 | 3.83 | % | 3.50 | % | September 2019 – June 2028 | 807,882 | 905,525 | 4.44 | % | 3.83 | % | December 2020 – June 2028 | |||||||||||||||||||||
Total outstanding principal balance | 2,416,807 | 2,058,891 | |||||||||||||||||||||||||||||||||
Unamortized debt discounts and loan costs | (29,216 | ) | (33,439 | ) | (36,938 | ) | (29,216 | ) | |||||||||||||||||||||||||||
Total | $ | 2,029,675 | $ | 1,831,985 | |||||||||||||||||||||||||||||||
Total secured borrowings, net | $ | 2,379,869 | $ | 2,029,675 |
(1) | Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. |
(2) | As of December 31, 2018 and 2017, accrued interest on secured borrowings totaled $10.9 million and $6.6 million, respectively. |
Year ending December 31, | ||||||||
2018 | $ | 309,914 | ||||||
2019 | 169,230 | $ | 314,682 | |||||
2020 | 187,184 | 303,819 | ||||||
2021 | 152,497 | 233,041 | ||||||
2022 | 174,436 | 332,380 | ||||||
2023 | 865,362 | |||||||
Thereafter | 1,065,630 | 367,523 | ||||||
Future minimum principal payments due | $ | 2,058,891 | $ | 2,416,807 |
DERIVATIVES |
Type | Quantity | Maturity Dates | Hedge Interest Rates | Swap Contract Notional Amount | Credit Risk Adjusted Fair Market Value | Gain Recognized in Accumulated Comprehensive Loss | Loss Recognized into Earnings | Quantity | Maturity Date | Hedge Interest Rate | Swap Contract Notional Amount | Credit Risk Adjusted Fair Value | Gain Recognized in Accumulated Comprehensive Loss | Loss Recognized into Earnings | ||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | 9 | 11/14/2018-1/11/23 | 0.90% - 4.30 | % | $ | 175,552 | $ | 2,625 | $ | 2,090 | $ | (16 | ) | 8 | 11/9/21 -6/11/23 | 0.99% -4.30 | % | $ | 205,540 | $ | 3,013 | $ | 2,529 | $ | (87 | ) | ||||||||||||||||||||||||
Accrued interest | — | 18 | — | — | — | 46 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total – designated derivative assets | 9 | $ | 175,552 | $ | 2,643 | $ | 2,090 | $ | (16 | ) | ||||||||||||||||||||||||||||||||||||||||
Sub-total | 8 | $ | 205,540 | $ | 3,059 | $ | 2,529 | $ | (87 | ) |
Type | Quantity | Maturity Date | Contracted Fixed Conversion Rate to U.S. Dollar | Total Contracted USD to be Received | Credit Risk Adjusted Fair Value | Gain Recognized in Accumulated Comprehensive Loss | Loss Recognized into Earnings | ||||||||||||||||
Cross currency swap contract | 1 | 11/26/25 | 1 EURO to $1.3068 | $ | 68,494 | $ | 2,704 | $ | 2,366 | $ | — | ||||||||||||
Accrued rent | — | 17 | — | — | |||||||||||||||||||
Sub-total | 1 | $ | 68,494 | $ | 2,721 | $ | 2,366 | $ | — | ||||||||||||||
Total – designated derivative assets | 9 | 5,780 | 4,895 | (87 | ) |
Type | Quantity | Maturity Dates | Hedge Interest Rates | Swap Contract Notional Amount | Credit Risk Adjusted Fair Market Value | Loss Recognized in Accumulated Comprehensive Loss | Gain Recognized into Earnings | Quantity | Maturity Date | Hedge Interest Rate | Swap Contract Notional Amount | Credit Risk Adjusted Fair Value | Loss Recognized in Accumulated Comprehensive Loss | Loss Recognized into Earnings | ||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | 7 | 3/14/18-9/27/25 | 1.98% - 6.22 | % | $ | 206,447 | $ | (2,735 | ) | $ | (2,393 | ) | $ | 4 | 26 | 2/15/22- 12/8/25 | 2.50%- 3.13 | % | $ | 615,570 | $ | (7,621 | ) | $ | (5,906 | ) | $ | (366 | ) | |||||||||||||||||||||
Accrued interest | — | (113 | ) | — | — | — | (347 | ) | — | — | ||||||||||||||||||||||||||||||||||||||||
Total – designated derivative liabilities | 7 | $ | 206,447 | $ | (2,848 | ) | $ | (2,393 | ) | $ | 4 | 26 | $ | 615,570 | $ | (7,968 | ) | $ | (5,906 | ) | $ | (366 | ) |
Type | Quantity | Maturity Dates | Hedge Interest Rates | Swap Contract Notional Amount | Credit Risk Adjusted Fair Market Value | Gain Recognized into Earnings | |||||||||||||||
Interest rate swap contracts | 4 | 2/9/2018-2/9/2019 | 1.69% - 3.47 | % | $ | 318,747 | $ | (4,312 | ) | $ | 204 | ||||||||||
Accrued interest | — | (184 | ) | — | |||||||||||||||||
Total – dedesignated derivative liabilities | 4 | $ | 318,747 | $ | (4,496 | ) | $ | 204 |
Type | Quantity | Maturity Date | Hedge Interest Rate | Swap Contract Notional Amount | Credit Risk Adjusted Fair Value | Gain Recognized into Earnings | |||||||||||||||
Interest rate swap contracts | 1 | 12/14/20 | 2.25 | % | $ | 55,439 | $ | 144 | $ | 132 | |||||||||||
Accrued interest | — | 5 | — | ||||||||||||||||||
Total – dedesignated derivative assets | 1 | $ | 55,439 | $ | 149 | $ | 132 |
Type | Quantity | Maturity Date | Hedge Interest Rate | Swap Contract Notional Amount | Credit Risk Adjusted Fair Value | Gain Recognized into Earnings | |||||||||||||||
Interest rate swap contract | 1 | 2/9/19 | 3.47 | % | $ | 262,734 | $ | (256 | ) | $ | 906 | ||||||||||
Accrued interest | — | (334 | ) | — | |||||||||||||||||
Total – dedesignated derivative liability | 1 | $ | 262,734 | $ | (590 | ) | $ | 906 |
INCOME TAXES |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Current tax expense: | ||||||||||||||||||||||||
Current tax expense (benefit): | ||||||||||||||||||||||||
Ireland | $ | — | $ | — | $ | 33 | $ | — | $ | — | $ | — | ||||||||||||
Luxembourg | 195 | 145 | 252 | 44 | 195 | 145 | ||||||||||||||||||
Australia | 4,062 | 1,742 | 138 | (138 | ) | 4,062 | 1,742 | |||||||||||||||||
Other | 43 | 33 | 57 | 50 | 43 | 33 | ||||||||||||||||||
Current tax expense — total | 4,300 | 1,920 | 480 | |||||||||||||||||||||
Deferred tax (benefit) expense: | ||||||||||||||||||||||||
Current tax expense (benefit) — total | (44 | ) | 4,300 | 1,920 | ||||||||||||||||||||
Deferred tax expense (benefit): | ||||||||||||||||||||||||
Ireland | 8,710 | (10,812 | ) | 4,558 | 9,865 | 8,710 | (10,812 | ) | ||||||||||||||||
Australia | (1,743 | ) | 1,615 | 334 | 105 | (1,743 | ) | 1,615 | ||||||||||||||||
Other | 65 | — | 27 | — | 65 | — | ||||||||||||||||||
Deferred tax (benefit) expense — total | 7,032 | (9,197 | ) | 4,919 | ||||||||||||||||||||
Total income tax (benefit) expense | $ | 11,332 | $ | (7,277 | ) | $ | 5,399 | |||||||||||||||||
Deferred tax expense (benefit) — total | 9,970 | 7,032 | (9,197 | ) | ||||||||||||||||||||
Total income tax expense (benefit) | $ | 9,926 | $ | 11,332 | $ | (7,277 | ) |
December 31, 2017 | December 31, 2016 | December 31, 2018 | December 31, 2017 | |||||||||||||
Deferred tax asset: | ||||||||||||||||
Net operating loss carry forwards | $ | 170,960 | $ | 151,575 | $ | 177,663 | $ | 170,960 | ||||||||
Net unrealized losses on derivative instruments | 390 | 1,181 | 773 | 390 | ||||||||||||
Basis difference on acquisition of GAAM Australian assets | 7,314 | 6,786 | 6,619 | 7,314 | ||||||||||||
Other | 55 | 224 | 168 | 55 | ||||||||||||
Valuation allowance | (39,484 | ) | (30,524 | ) | (37,429 | ) | (39,484 | ) | ||||||||
Total deferred tax asset | 139,235 | 129,242 | 147,794 | 139,235 | ||||||||||||
Deferred tax liability: | ||||||||||||||||
Excess of tax depreciation over book depreciation | (153,447 | ) | (137,249 | ) | (171,725 | ) | (153,447 | ) | ||||||||
Book/tax differences identified in connection with GAAM Portfolio acquisition | (412 | ) | (438 | ) | (112 | ) | (412 | ) | ||||||||
Net earnings of non-European Union member subsidiaries | (3,745 | ) | (3,957 | ) | (3,654 | ) | (3,745 | ) | ||||||||
Withholding tax on Australian unrepatriated earnings | (1,800 | ) | — | (2,054 | ) | (1,800 | ) | |||||||||
Total deferred tax liability | (159,404 | ) | (141,644 | ) | (177,545 | ) | (159,404 | ) | ||||||||
Deferred tax liability, net | $ | (20,169 | ) | $ | (12,402 | ) | $ | (29,751 | ) | $ | (20,169 | ) |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Irish statutory corporate tax rate on trading income | 12.5 | % | 12.5 | % | 12.5 | % | 12.5 | % | 12.5 | % | 12.5 | % | ||||||||||||
Valuation allowances | 59.9 | % | (19.8 | )% | 12.0 | % | (1.4 | )% | 59.9 | % | (19.8 | )% | ||||||||||||
Equity earnings from Fly-Z/C LP | (0.4 | )% | 0.2 | % | (0.5 | )% | ||||||||||||||||||
Tax impact of repurchased and resold Notes | (0.8 | )% | 1.3 | % | (3.2 | )% | 0.1 | % | (0.8 | )% | 1.3 | % | ||||||||||||
Foreign tax rate differentials | (18.4 | )% | 7.8 | % | (9.7 | )% | (2.8 | )% | (18.4 | )% | 7.8 | % | ||||||||||||
True-up of prior year tax provision | 2.2 | % | — | 1.4 | % | — | 2.2 | % | — | |||||||||||||||
Non-taxable gain on debt extinguishment | — | 0.3 | % | — | — | — | 0.3 | % | ||||||||||||||||
Non-deductible interest expense, transaction fees and expenses | 12.2 | % | (4.8 | )% | 6.1 | % | 1.8 | % | 12.2 | % | (4.8 | )% | ||||||||||||
Deductible intra-group interest | — | 30.9 | % | — | — | — | 30.9 | % | ||||||||||||||||
Unrealized foreign exchange loss on re-valuation of deferred tax balances | 0.5 | % | (8.6 | )% | — | 0.1 | % | 0.5 | % | (8.6 | )% | |||||||||||||
Withholding tax | 13.3 | % | 0.0 | % | 0.0 | % | — | 13.3 | % | — | ||||||||||||||
Other | 0.3 | % | 0.2 | % | 0.5 | % | 0.1 | % | (0.1 | )% | 0.4 | % | ||||||||||||
Effective tax rate | 81.3 | % | 20.0 | % | 19.1 | % | 10.4 | % | 81.3 | % | 20.0 | % |
OTHER LIABILITIES |
December 31, 2017 | December 31, 2016 | December 31, 2018 | December 31, 2017 | |||||||||||||
Current tax payable | $ | 4,226 | $ | 2,036 | $ | 50 | $ | 4,226 | ||||||||
Lease discount | 25,539 | — | ||||||||||||||
Lease incentive obligation | 20,306 | 24,757 | 14,020 | 20,306 | ||||||||||||
Deferred rent | 8,444 | 3,792 | 15,067 | 8,444 | ||||||||||||
Refundable deposits | 805 | 350 | 3,420 | 805 | ||||||||||||
Other | 5,875 | 9,319 | 22,306 | 5,875 | ||||||||||||
Total other liabilities | $ | 39,656 | $ | 40,254 | $ | 80,402 | $ | 39,656 |
SHAREHOLDERS’ EQUITY |
SHARE-BASED COMPENSATION |
EARNINGS PER SHARE |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | $ | 85,723 | $ | 2,598 | $ | (29,112 | ) | ||||||||||
Less: | ||||||||||||||||||||||||
Dividends declared and paid to shareholders | — | — | (41,388 | ) | — | — | — | |||||||||||||||||
Dividend equivalents paid to vested RSUs and SARs | — | — | (1,054 | ) | — | — | — | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 2,598 | $ | (29,112 | ) | $ | (19,644 | ) | $ | 85,723 | $ | 2,598 | $ | (29,112 | ) | |||||||||
Denominator | ||||||||||||||||||||||||
Weighted average shares outstanding-Basic | 30,307,357 | 33,239,001 | 41,222,690 | 29,744,083 | 30,307,357 | 33,239,001 | ||||||||||||||||||
Dilutive common equivalent shares: | ||||||||||||||||||||||||
RSUs | — | — | 7,950 | — | — | — | ||||||||||||||||||
SARs | 46,068 | — | 84,509 | 39,821 | 46,068 | — | ||||||||||||||||||
Weighted average shares outstanding-Diluted | 30,353,425 | 33,239,001 | 41,315,149 | 29,783,904 | 30,353,425 | 33,239,001 | ||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||
Distributed earnings | $ | — | $ | — | $ | 1.00 | $ | — | $ | — | $ | — | ||||||||||||
Undistributed income (excess distribution) | $ | 0.09 | $ | (0.88 | ) | $ | (0.48 | ) | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) | |||||||||
Basic earnings (loss) per share | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) | ||||||||||
Diluted | ||||||||||||||||||||||||
Distributed earnings | $ | — | $ | — | $ | 1.00 | $ | — | $ | — | $ | — | ||||||||||||
Undistributed income (excess distribution) | $ | 0.09 | $ | (0.88 | ) | $ | (0.48 | ) | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) | |||||||||
Diluted earnings (loss) per share | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) |
COMMITMENTS AND CONTINGENCIES |
RELATED PARTY TRANSACTIONS |
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | ||||||||||||||||||||||
Fixed base fee payments (1) | $ | 245 | $ | 245 | $ | 245 | $ | 245 | $ | 245 | $ | 1,470 | $ | 2,695 | ||||||||||||||
Fixed administrative agency fee payments due by B&B Air Funding (1) | 108 | 69 | 31 | 12 | 12 | 13 | 245 | |||||||||||||||||||||
Fixed administrative services fee due under the Term Loan (2) | 472 | 452 | 373 | 288 | 200 | 134 | 1,919 | |||||||||||||||||||||
Fixed administrative services fee due under the Magellan Acquisition Limited Facility (2) | 204 | 204 | 204 | 202 | 192 | 758 | 1,764 | |||||||||||||||||||||
Fixed administrative services fee due under Fly Acquisition III (2) | 168 | 153 | 144 | 144 | 31 | 7 | 647 | |||||||||||||||||||||
Fixed administrative agency fee payments due by other subsidiaries (2) | 401 | 362 | 325 | 271 | 262 | 622 | 2,243 | |||||||||||||||||||||
Fixed payments for Management Expenses (1) (3) | 7,307 | 7,307 | 7,307 | 7,307 | 7,307 | 54,799 | 91,334 | |||||||||||||||||||||
Total | $ | 8,905 | $ | 8,792 | $ | 8,629 | $ | 8,469 | $ | 8,249 | $ | 57,803 | $ | 100,847 |
2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total | ||||||||||||||||||||||
Fixed base fee payments (1) | $ | 250 | $ | 250 | $ | 250 | $ | 238 | $ | — | $ | — | $ | 988 | ||||||||||||||
Fixed administrative agency fee payments due by B&B Air Funding (1) | 76 | 37 | 24 | 21 | 12 | 1 | 171 | |||||||||||||||||||||
Fixed administrative services fee due under the Term Loan (2) | 441 | 385 | 300 | 212 | 61 | 62 | 1,461 | |||||||||||||||||||||
Fixed administrative services fee due under the Magellan Acquisition Limited Facility (2) | 228 | 228 | 226 | 215 | 204 | 601 | 1,702 | |||||||||||||||||||||
Fixed administrative services fee due under Fly Acquisition III Facility (2) | 228 | 228 | 213 | 91 | 67 | 213 | 1,040 | |||||||||||||||||||||
Fixed administrative services fee due under Fly Aladdin Acquisition Facility (2) | 372 | 370 | 349 | 306 | 176 | 255 | 1,828 | |||||||||||||||||||||
Fixed administrative services fee due under Fly Aladdin Engine Funding Facility (2) | 12 | 12 | 12 | 12 | 10 | — | 58 | |||||||||||||||||||||
Fixed administrative agency fee payments due by other subsidiaries (2) | 312 | 280 | 225 | 197 | 253 | 289 | 1,556 | |||||||||||||||||||||
Fixed payments for Management Expenses (1) (3) | 9,561 | 9,561 | 9,561 | 9,561 | 9,561 | 62,146 | 109,951 | |||||||||||||||||||||
Acquisition fees related to Portfolio B in the AirAsia Transactions | 3,013 | 4,545 | 8,336 | — | — | — | 15,894 | |||||||||||||||||||||
Disposition fees on flight equipment held for sale | 5,264 | — | — | — | — | — | 5,264 | |||||||||||||||||||||
Total | $ | 19,757 | $ | 15,896 | $ | 19,496 | $ | 10,853 | $ | 10,344 | $ | 63,567 | $ | 139,913 |
(1) | Assumes Consumer Price Index (“CPI”) rates in effect as of December 31, |
(2) | Assumes number of aircraft and engines at December 31, |
(3) | Assumes |
FAIR VALUE MEASUREMENTS |
As of December 31, 2017 | As of December 31, 2016 | |||||||||||||||
�� | Principal Amount Outstanding | Fair Value | Principal Amount Outstanding | Fair Value | ||||||||||||
Securitization Notes | $ | 101,551 | $ | 95,839 | $ | 139,741 | $ | 134,850 | ||||||||
Nord LB Facility | 153,176 | 153,176 | 171,509 | 171,509 | ||||||||||||
CBA Facility | 49,080 | 49,080 | 56,146 | 56,146 | ||||||||||||
Term Loan | 431,271 | 431,271 | 404,016 | 406,804 | ||||||||||||
Magellan Acquisition Limited Facility | 331,768 | 331,768 | — | — | ||||||||||||
Fly Acquisition III Facility | 86,520 | 86,520 | 113,045 | 113,045 | ||||||||||||
Other Aircraft Secured Borrowings | 905,525 | 905,525 | 980,967 | 980,967 | ||||||||||||
2020 Notes | — | — | 375,000 | 394,219 | ||||||||||||
2021 Notes | 325,000 | 339,235 | 325,000 | 340,438 | ||||||||||||
2024 Notes | 300,000 | 301,500 | — | — |
As of December 31, 2018 | As of December 31, 2017 | |||||||||||||||
Principal Amount Outstanding | Fair Value | Principal Amount Outstanding | Fair Value | |||||||||||||
Securitization Notes | $ | 85,584 | $ | 80,770 | $ | 101,551 | $ | 95,839 | ||||||||
Term Loan | 407,768 | 396,554 | 431,271 | 431,271 | ||||||||||||
2021 Notes | 325,000 | 329,875 | 325,000 | 339,235 | ||||||||||||
2024 Notes | 300,000 | 279,390 | 300,000 | 301,500 |
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
December 31, 2018: | ||||||||||||||||||||||||||||||||
Derivative assets | — | $ | 5,929 | — | $ | 5,929 | ||||||||||||||||||||||||||
Derivative liabilities | — | 8,558 | — | 8,558 | ||||||||||||||||||||||||||||
Investment in equity certificates | — | 5,747 | — | 5,747 | ||||||||||||||||||||||||||||
December 31, 2017: | ||||||||||||||||||||||||||||||||
Derivative assets | — | $ | 2,643 | — | $ | 2,643 | — | $ | 2,643 | — | $ | 2,643 | ||||||||||||||||||||
Derivative liabilities | — | 7,344 | — | 7,344 | — | 7,344 | — | 7,344 | ||||||||||||||||||||||||
December 31, 2016: | ||||||||||||||||||||||||||||||||
Derivative assets | — | $ | 1,905 | — | $ | 1,905 | ||||||||||||||||||||||||||
Derivative liabilities | — | 13,281 | — | 13,281 |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION |
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | |||||||||||||
Total revenues | $ | 79,266 | $ | 79,832 | $ | 86,219 | $ | 107,934 | ||||||||
Net income (loss) | $ | 5,052 | $ | 2,880 | $ | (12,504 | ) | $ | 7,170 | |||||||
Earnings (loss) per share — Basic | $ | 0.16 | $ | 0.09 | $ | (0.43 | ) | $ | 0.25 | |||||||
Earnings (loss) per share — Diluted | $ | 0.16 | $ | 0.09 | $ | (0.43 | ) | $ | 0.25 |
March 31, 2016 | June 30, 2016 | September 30, 2016 | December 31, 2016 | |||||||||||||
Total revenues | $ | 81,208 | $ | 77,934 | $ | 85,297 | $ | 100,600 | ||||||||
Net income (loss) | $ | 7,100 | $ | 4,677 | $ | 22,942 | $ | (63,831 | ) | |||||||
Earnings (loss) per share — Basic | $ | 0.21 | $ | 0.14 | $ | 0.70 | $ | (1.98 | ) | |||||||
Earnings (loss) per share — Diluted | $ | 0.21 | $ | 0.14 | $ | 0.70 | $ | (1.98 | ) |
March 31, 2018 | June 30, 2018 | September 30, 2018 | December 31, 2018 | |||||||||||||
Total revenues | $ | 88,755 | $ | 102,673 | $ | 104,566 | $ | 122,305 | ||||||||
Net income | $ | 9,630 | $ | 24,344 | $ | 20,740 | $ | 31,009 | ||||||||
Earnings per share — Basic | $ | 0.34 | $ | 0.87 | $ | 0.68 | $ | 0.95 | ||||||||
Earnings per share — Diluted | $ | 0.34 | $ | 0.87 | $ | 0.68 | $ | 0.95 |
March 31, 2017 | June 30, 2017 | September 30, 2017 | December 31, 2017 | |||||||||||||
Total revenues | $ | 79,266 | $ | 79,832 | $ | 86,219 | $ | 107,934 | ||||||||
Net income (loss) | $ | 5,052 | $ | 2,880 | $ | (12,504 | ) | $ | 7,170 | |||||||
Earnings (loss) per share — Basic | $ | 0.16 | $ | 0.09 | $ | (0.43 | ) | $ | 0.25 | |||||||
Earnings (loss) per share — Diluted | $ | 0.16 | $ | 0.09 | $ | (0.43 | ) | $ | 0.25 |
SUBSEQUENT EVENTS |
December 31, | December 31, | |||||||||||||||
2017 | 2016 | 2018 | 2017 | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 157,014 | $ | 229,777 | $ | 43,233 | $ | 157,014 | ||||||||
Notes receivable from subsidiaries | 375,477 | 441,451 | 466,729 | 375,477 | ||||||||||||
Investments in subsidiaries | 985,476 | 912,163 | 1,019,048 | 985,476 | ||||||||||||
Investment in unconsolidated subsidiary | 8,196 | 7,700 | ||||||||||||||
Other assets, net | 1,655 | 534 | 11,019 | 9,851 | ||||||||||||
Total assets | $ | 1,527,818 | $ | 1,591,625 | $ | 1,540,029 | $ | 1,527,818 | ||||||||
Liabilities | ||||||||||||||||
Payable to related parties | $ | 223 | $ | 906 | $ | 729 | $ | 223 | ||||||||
Payable to subsidiaries | 349,585 | 280,034 | 202,298 | 349,585 | ||||||||||||
Unsecured borrowings, net | 615,922 | 691,390 | 617,664 | 615,922 | ||||||||||||
Deferred tax liability, net | 3,739 | 1,946 | 3,066 | 3,739 | ||||||||||||
Accrued and other liabilities | 14,640 | 24,114 | 14,162 | 14,640 | ||||||||||||
Total liabilities | 984,109 | 998,390 | 837,919 | 984,109 | ||||||||||||
Shareholders’ equity | 543,709 | 593,235 | 702,110 | 543,709 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,527,818 | $ | 1,591,625 | $ | 1,540,029 | $ | 1,527,818 |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Equity earnings (loss) from subsidiaries | $ | 35,208 | $ | (24,385 | ) | $ | 17,065 | $ | 90,175 | $ | 35,208 | $ | (24,385 | ) | ||||||||||
Equity earnings from unconsolidated subsidiary | 496 | 530 | 1,159 | |||||||||||||||||||||
Equity earnings (loss) from unconsolidated subsidiary | (54 | ) | 496 | 530 | ||||||||||||||||||||
Intercompany management fee income | 12,124 | 8,866 | 15,053 | 16,844 | 12,124 | 8,866 | ||||||||||||||||||
Intercompany interest income | 34,068 | 44,394 | 48,077 | 25,740 | 34,068 | 44,394 | ||||||||||||||||||
Interest and other income | 809 | 410 | 224 | 1,072 | 809 | 410 | ||||||||||||||||||
Total revenues | 82,705 | 29,815 | 81,578 | 133,777 | 82,705 | 29,815 | ||||||||||||||||||
Expense | ||||||||||||||||||||||||
Interest expense | 45,970 | 48,013 | 48,013 | 38,211 | 45,970 | 48,013 | ||||||||||||||||||
Selling, general and administrative | 12,630 | 11,803 | 12,987 | 12,314 | 12,630 | 11,803 | ||||||||||||||||||
Ineffective, dedesignated and terminated derivatives | (1,798 | ) | — | — | ||||||||||||||||||||
Loss on modification and extinguishment of debt | 19,655 | — | — | — | 19,655 | — | ||||||||||||||||||
Total expenses | 78,255 | 59,816 | 61,000 | 48,727 | 78,255 | 59,816 | ||||||||||||||||||
Net income (loss) before provision (benefit) for income taxes | 4,450 | (30,001 | ) | 20,578 | 85,050 | 4,450 | (30,001 | ) | ||||||||||||||||
Provision (benefit) for income taxes | 1,852 | (889 | ) | (2,220 | ) | (673 | ) | 1,852 | (889 | ) | ||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | $ | 85,723 | $ | 2,598 | $ | (29,112 | ) | ||||||||||
Weighted average number of shares: | ||||||||||||||||||||||||
Basic | 30,307,357 | 33,239,001 | 41,222,690 | 29,744,083 | 30,307,357 | 33,239,001 | ||||||||||||||||||
Diluted | 30,353,425 | 33,239,001 | 41,315,149 | 29,783,904 | 30,353,425 | 33,239,001 | ||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||
Basic | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) | ||||||||||
Diluted | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 2.88 | $ | 0.09 | $ | (0.88 | ) |
Years ended | Years ended | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2018 | 2017 | 2016 | |||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | $ | 85,723 | $ | 2,598 | $ | (29,112 | ) | ||||||||||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | ||||||||||||||||||||||||
Equity earnings (loss) from subsidiaries | (35,208 | ) | 24,385 | (17,065 | ) | |||||||||||||||||||
Equity earnings from unconsolidated subsidiary | (496 | ) | (530 | ) | (1,159 | ) | ||||||||||||||||||
Equity (earnings) loss from subsidiaries | (90,175 | ) | (35,208 | ) | 24,385 | |||||||||||||||||||
Equity (earnings) loss from unconsolidated subsidiary | 54 | (496 | ) | (530 | ) | |||||||||||||||||||
Deferred income taxes | 1,852 | (12,139 | ) | (2,276 | ) | (673 | ) | 1,852 | (12,139 | ) | ||||||||||||||
Share-based compensation | — | — | 195 | |||||||||||||||||||||
Amortization of debt discount and other | 1,931 | 1,982 | 1,982 | 1,742 | 1,931 | 1,982 | ||||||||||||||||||
Loss on modification and extinguishment of debt | 19,655 | — | — | — | 19,655 | — | ||||||||||||||||||
Distributions from unconsolidated subsidiary | 2,131 | — | — | |||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Payable to subsidiaries | 6,144 | (162,229 | ) | 132,843 | (104,303 | ) | 6,144 | (162,229 | ) | |||||||||||||||
Other assets | (1,121 | ) | 476 | 1,060 | (709 | ) | (1,121 | ) | 476 | |||||||||||||||
Payable to related parties | (683 | ) | 856 | (867 | ) | 506 | (683 | ) | 856 | |||||||||||||||
Accrued and other liabilities | (9,478 | ) | 12,622 | 483 | (477 | ) | (9,478 | ) | 12,622 | |||||||||||||||
Net cash flows provided by (used in) operating activities | (14,806 | ) | (163,689 | ) | 137,994 | |||||||||||||||||||
Net cash flows used in operating activities | (106,181 | ) | (14,806 | ) | (163,689 | ) | ||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||||
Capital contributions to subsidiaries | (8,986 | ) | — | — | ||||||||||||||||||||
Distributions received from subsidiaries | — | — | 53,500 | 25,792 | — | — | ||||||||||||||||||
Capital contributions to unconsolidated subsidiary | — | — | (2,009 | ) | ||||||||||||||||||||
Notes receivable from subsidiaries | (48,335 | ) | (40,172 | ) | (650,083 | ) | ||||||||||||||||||
Notes payable to subsidiaries | 144,718 | 334,556 | 505,273 | |||||||||||||||||||||
Distributions received from unconsolidated subsidiary | 3,103 | — | — | |||||||||||||||||||||
Advances of notes receivable to subsidiaries | (265,311 | ) | (48,335 | ) | (40,172 | ) | ||||||||||||||||||
Repayment of notes receivable from subsidiaries | 223,925 | 144,718 | 334,556 | |||||||||||||||||||||
Investment in Horizon I Limited equity certificates | (5,747 | ) | — | — | ||||||||||||||||||||
Net cash flows provided by (used in) investing activities | 96,383 | 294,384 | (93,319 | ) | (27,224 | ) | 96,383 | 294,384 | ||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 295,150 | — | — | — | 295,150 | — | ||||||||||||||||||
Repayment of unsecured borrowings | (375,000 | ) | — | — | — | (375,000 | ) | — | ||||||||||||||||
Debt modification and extinguishment costs | (16,287 | ) | — | — | — | (16,287 | ) | — | ||||||||||||||||
Debt issuance costs | (917 | ) | — | — | — | (917 | ) | — | ||||||||||||||||
Shares issued | 19,624 | — | — | |||||||||||||||||||||
Shares repurchased | (57,286 | ) | (40,257 | ) | (81,432 | ) | — | (57,286 | ) | (40,257 | ) | |||||||||||||
Dividends paid | — | — | (41,388 | ) | ||||||||||||||||||||
Dividend equivalents | — | — | (1,054 | ) | ||||||||||||||||||||
Net cash flows used in financing activities | (154,340 | ) | (40,257 | ) | (123,874 | ) | ||||||||||||||||||
Net cash flows provided by (used in) financing activities | 19,624 | (154,340 | ) | (40,257 | ) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (72,763 | ) | 90,438 | (79,199 | ) | (113,781 | ) | (72,763 | ) | 90,438 | ||||||||||||||
Cash and cash equivalents at beginning of period | 229,777 | 139,339 | 218,538 | 157,014 | 229,777 | 139,339 | ||||||||||||||||||
Cash and cash equivalents at end of period | $ | 157,014 | $ | 229,777 | $ | 139,339 | $ | 43,233 | $ | 157,014 | $ | 229,777 | ||||||||||||
Supplemental Disclosure: | ||||||||||||||||||||||||
Cash paid during the year for: | ||||||||||||||||||||||||
Interest | $ | 41,883 | $ | 46,032 | $ | 46,723 | $ | 36,425 | $ | 41,883 | $ | 46,032 | ||||||||||||
Taxes | — | — | — | — | — | — | ||||||||||||||||||
Noncash Activities: | ||||||||||||||||||||||||
Noncash investing activities: | ||||||||||||||||||||||||
Capital contribution to subsidiaries | 109,391 | 207,340 | 17,246 | 7 | 109,391 | 207,340 | ||||||||||||||||||
Distributions from subsidiaries | 76,451 | 55,039 | 711 | 3,386 | 76,451 | 55,039 | ||||||||||||||||||
Intercompany sale of subsidiaries | 39,605 | — | — |
Exhibit Number | Description of Exhibit | |
Memorandum of Association (1) | ||
Amended and Restated Bye-Laws of Fly Leasing | ||
Deposit Agreement between Deutsche Bank Trust Company Americas and Babcock & Brown Air Limited. (1) | ||
Servicing Agreement, dated as of October 2, 2007, among Babcock & Brown Aircraft Management LLC, Babcock & Brown Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. (1) | ||
Administrative Services Agreement, dated as of October 2, 2007, among Deutsche Bank Trust Company Americas, AMBAC Assurance Corporation, Babcock & Brown Air Management Co. Limited and Babcock & Brown Air Funding I Limited. (1) | ||
Trust Indenture, dated as of October 2, 2007, among Deutsche Bank Trust Company Americas, BNP Paribas, AMBAC Assurance Corporation and Babcock & Brown Air Funding I Limited. (1) | ||
Security Trust Agreement, dated as of October 2, 2007, between Deutsche Bank Trust Company Americas, and Babcock & Brown Air Funding I Limited. (1) | ||
Cash Management Agreement between Deutsche Bank Trust Company Americas and Babcock & Brown Air Funding I Limited. (1) | ||
Form of Director Service Agreement between Babcock & Brown Air Limited and each director thereof. (1) | ||
Amendment No. 1 to Servicing Agreement, dated as of April 29, 2010, among Babcock & Brown Aircraft Management LLC, Babcock & Brown Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. (3) | ||
Fly Leasing Limited Omnibus Incentive | ||
Form of Stock Appreciation Right Award | ||
Form of Restricted Stock Unit Award | ||
Loan Agreement dated as of November 14, 2007, among Global Aviation Holdings Fund Limited, GAHF (Ireland) Limited, Caledonian Aviation Holdings Limited and Norddeutsche Landesbank Girozentrale. (4) | ||
Form of Loan Agreement among Hobart Aviation Holdings Limited, Norddeutsche Landesbank Girozentrale and each borrower thereof. (4) | ||
Form of Servicing Agreement among BBAM US LP, BBAM Aviation Services Limited and each company thereof. (17) | ||
Securities Purchase Agreement dated November 30, 2012, by and among Fly Leasing Limited, Summit Aviation Partners LLC and such persons identified therein. (8) | ||
4.15 | Purchase Agreement dated November 30, 2012 by and among BBAM Limited Partnership, Summit Aviation Partners LLC, Fly-BBAM Holdings Ltd., Summit Aviation Management Co., Ltd. and such persons identified therein. (6) | |
First Amendment to Purchase |
Exhibit Number | Description of Exhibit | |
Registration Rights Agreement dated as of December 28, 2012, by and among Fly Leasing Limited and each shareholder identified therein. (8) | ||
Amended and Restated Servicing Agreement dated as of January 24, 2013, by and among BBAM US LP, BBAM Aviation Services Limited and Fly Leasing Limited. (8) | ||
Indenture dated December 11, 2013 between Fly Leasing Limited and Wells Fargo Bank, National Association. (7) | ||
First Supplemental Indenture dated December 11, 2013 between Fly Leasing Limited and Wells Fargo Bank, Nation Association. (7) | ||
Second Supplemental Indenture dated as of October 3, 2014, between Fly Leasing Limited and Wells Fargo Bank, National Association. (10) | ||
Amendment No. 1 to Trust Indenture, dated as of October 24, 2014, by and among Babcock & Brown Air Funding I Limited, Deutsche Bank Trust Company Americas, BNP Paribas and AMBAC Assurance Corporation. (12) | ||
Amendment No. 2 to Servicing Agreement, dated as of October 24, 2014, by and among BBAM Aircraft Management LP, BBAM Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. (12) | ||
First Amendment to Amended and Restated Fly Leasing Limited Management Agreement, dated June 19, 2015, between Fly Leasing Limited and Fly Leasing Management Co. Limited. (13) | ||
Sale Agreement dated June 19, 2015, among certain sellers and ECAF I Ltd. (13) | ||
Servicing Agreement dated as of February 26, 2016, among BBAM US LP, BBAM Aviation Services Limited and Fly Acquisition III Limited. (14) | ||
Second Amendment to Amended and Restated Fly Leasing Limited Management Agreement, dated July 27, 2016, between Fly Leasing Limited and Fly Leasing Management Co. Limited. (16) | ||
Amendment No. 3 to Servicing Agreement, dated as of February 1, 2017, by and among BBAM Aircraft Management LP, BBAM Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. (17) | ||
Third Amendment to Amended and Restated Fly Leasing Limited Management Agreement, dated as of February 1, 2017, between Fly Leasing Limited and Fly Leasing Management Co. Limited. (17) | ||
Fee Rebate Side Letter, dated as of February 1, 2017, by and among Babcock & Brown Air Funding I Limited, Fly Leasing Management Co. Limited, and AMBAC Assurance Corporation. (17) | ||
Guaranty [Fly 2016A Warehouse] dated February 26, 2016 by Fly Leasing Limited. (17) | ||
Third Supplemental Indenture dated as of October 16, 2017, between Fly Leasing Limited and Wells Fargo Bank, National Association. (19) |
Servicing Agreement dated as of December 8, 2017, among BBAM US LP, BBAM Aviation Services Limited and Magellan Acquisition Limited. (21) |
Exhibit Number | Description of Exhibit | |
Guaranty [Fly 2017A Term Loan] dated December 8, 2017 by Fly Leasing Limited. (21) | ||
Share Purchase Agreement, dated February 28, 2018, between Asia Aviation Capital Limited, Fly Aladdin Holdings Limited, Fly Leasing Limited and AirAsia Berhad. (22) | ||
Aircraft Sale and Purchase Agreement, dated February 28, 2018, between Asia Aviation Capital Limited, Fly Aladdin Holdings Limited and AirAsia Berhad. (22) | ||
Aircraft Sale and Purchase Option Agreement, dated April 26, 2018, but having effect between the parties as of February 28, 2018, between Asia Aviation Capital Limited, Fly Aladdin Holdings Limited and AirAsia Berhad. (22) | ||
Amended and Restated Commitment Letter, dated May 1, 2018, between BNP Paribas, Citibank, N.A., Commonwealth Bank of Australia, Singapore Branch, Deutsche Bank AG, Singapore Branch and Fly Leasing Limited. (22) | ||
Equity Commitment Letter, dated February 28, 2018, between Meridian Aviation Partners Limited and Fly Leasing Limited. (22) | ||
Equity Commitment Letter, dated February 28, 2018, between Summit Aviation Holdings LLC and Fly Leasing Limited. (22) | ||
Amended and Restated Purchase Commitment Letter (Portfolio C Aircraft and Portfolio D Aircraft), dated May 3, 2018, but having effect between the parties as of February 28, 2018, between Fly Leasing Limited and Nomura Babcock & Brown Co., Ltd. (22) | ||
Amended and Restated Delivery Side Letter (Portfolio C and Portfolio D), dated May 3, 2018, but having effect between the parties as of February 28, 2018, between Fly Leasing Limited and Incline B Aviation Limited Partnership. (22) | ||
Securities Purchase Agreement, dated July 11, 2018, between Fly Leasing Limited and Meridian Aviation Partners Limited. (23) | ||
Securities Purchase Agreement, dated July 11, 2018, between Fly Leasing Limited and Summit Aviation Holdings LLC. (23) | ||
Registration Rights Agreement, dated July 18, 2018, among Fly Leasing Limited and shareholders named therein. (23) | ||
Subscription Agreement, dated July 18, 2018, among Fly Leasing Limited, AirAsia Group Berhad and AirAsia Berhad. (23) | ||
Registration Rights Agreement, dated July 18, 2018, between Fly Leasing Limited and AirAsia Group Berhad. (23) | ||
Fly SPA Amendment Agreement (No. 1) dated July 11, 2018, among Fly Aladdin Holdings Limited, Fly Leasing Limited, Asia Aviation Capital Limited and AirAsia Group Berhad. (23) | ||
Fly SPA Amendment Agreement (No. 2) dated July 18, 2018, among Fly Aladdin Holdings Limited, Fly Leasing Limited, Asia Aviation Capital Limited and AirAsia Group Berhad. (23) | ||
Servicing Agreement dated June 15, 2018, among BBAM Aviation Services Limited, BBAM US LP, Fly Aladdin Funding Limited, Fly Aladdin MaltaCo Limited and each Borrower Group Company that becomes a party thereto. (23) | ||
4.52 | Purchase Agreement dated November 30, 2018 among the sellers identified therein, Horizon Aircraft Finance I Limited, Horizon Aircraft Finance I LLC and the other purchasers identified therein. | |
List of the Company’s subsidiaries. |
Exhibit Number | Description of Exhibit | |
Aircraft Mortgage and Security Agreement dated as of August 9, 2012, among Fly Funding II S.A.R.L., Fly Leasing Limited, Fly Peridot Holdings Limited, Babcock & Brown Air Acquisition I Limited, The Initial Intermediate Lessees, The Initial Lessor Subsidiaries, The Additional Grantors Referred to Therein and Wells Fargo Bank Northwest, National Association. (5) | ||
Amended and Restated Senior Secured Credit Agreement dated July 3, 2013 among Fly Acquisition II Limited, the Subsidiary Guarantors party thereto, the Lenders party thereto, and Deutsche Bank Trust Company Americas, as Security Trustee and as Administrative Agent. (9) | ||
Amended and Restated Term Loan Credit Agreement dated as of November 21, 2013 among Fly Funding II S.A.R.L., Fly Leasing Limited, Fly Peridot Holdings Limited, Babcock & Brown Air Acquisition I Limited, each other Guarantor Party referred to therein, the Lenders identified therein, Citibank, N.A., and Well Fargo Bank Northwest, National Association. (11) | ||
Amendment to Credit Agreement, dated as of April 22, 2015, among Fly Funding II S.à r.l., each Borrower Party named therein, the Consenting Lenders and the Replacement Lenders named therein, Wells Fargo Bank Northwest, National Association, as Collateral Agent, and Citibank N.A., in its capacity as Administrative Agent. (13) | ||
Facility Agreement [Fly 2016A Warehouse] dated as of February 26, 2016 among Fly Acquisition III Limited, the Subsidiary Guarantors party thereto, the Lenders party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. (14) | ||
Note Purchase Agreement [Fly 2016A Warehouse] dated as of February 26, 2016 among Fly Acquisition III Limited, the Purchasers party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. (14) | ||
Credit Agreement [Fly 2016A Warehouse] dated as of February 26, 2016 among Fly Acquisition III Limited, the Banks party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. (14) | ||
Second Amendment to Credit Agreement, dated as of October 19, 2016, among Fly Funding II S.à r.l., each Borrower Party named therein, the Consenting Lenders and the Replacement Lenders named therein, Wells Fargo Bank Northwest, National Association, as Collateral Agent, and Citibank N.A., in its capacity as Administrative Agent. (15) | ||
Third Amendment to Credit Agreement, dated as of April 28, 2017, among Fly Funding II S.à r.l., each Borrower Party named therein, the Consenting Lenders and the Replacement Lenders named therein, Wells Fargo Bank Northwest, National Association, as Collateral Agent, and Citibank N.A., in its capacity as Administrative Agent. (18) | ||
Fourth Amendment to Credit Agreement, dated as of November 1, 2017, among Fly Funding II S.à r.l., each Borrower Party named therein, the Consenting Lenders and the Replacement Lenders named therein, Wells Fargo Bank Northwest, National Association, as Collateral Agent, and Citibank N.A., in its capacity as Administrative Agent. (20) |
Facility Agreement [FLY 2017A Term Loan], dated as of December 8, 2017 among Magellan Acquisition Limited, the Subsidiary Guarantors party thereto, the Lenders party thereto, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee.(21) | ||
Note Purchase Agreement [FLY 2017A Term Loan], dated as of December 8, 2017 among Magellan Acquisition Limited, the Purchasers party thereto, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee.(21) | ||
Credit Agreement [FLY 2017A Term Loan], dated as of December 8, 2017 among Magellan Acquisition Limited, the Banks party thereto, The Bank of Tokyo-Mitsubishi UFJ, Ltd., as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee.(21) |
Exhibit Number | Description of Exhibit | |
Security Agreement [FLY 2017A Term Loan], dated as of December 8, 2017 among Magellan Acquisition Limited, the Grantors thereto, and Wells Fargo Bank, National Association, as Security | ||
Security Agreement [Fly 2016A Warehouse] dated February 26, 2016 among Fly Acquisition III Limited, the Grantors party thereto, and Well Fargo Bank, National Association as Security Trustee.(21) | ||
Senior Secured Credit Agreement dated June 15, 2018, among Fly Aladdin Funding Limited, as Borrower, Fly Aladdin MaltaCo Limited, as Fly Malta, the lenders party thereto, Wilmington Trust (London) Limited, as Security Trustee and BNP Paribas, as Administrative Agent. (23) | ||
Borrower Parent Security Agreement dated June 15, 2018, between Fly Aladdin Holdings Limited, as Grantor and Wilmington Trust (London) Limited, as Security Trustee. (23) | ||
Co-Borrower Security Agreement dated June 15, 2018, between Fly Aladdin Funding Limited, as Borrower, Fly Aladdin MaltaCo Limited, as Fly Malta and Wilmington Trust (London) Limited, as Security Trustee. (23) | ||
Deed of Limited Guaranty dated June 15, 2018, by Fly Leasing Limited. (23) | ||
Amendment to Senior Secured Credit Agreement dated July 19, 2018, among Fly Aladdin Funding Limited, as Borrower, Fly Aladdin MaltaCo Limited, as Fly Malta, the lenders, Wilmington Trust (London) Limited, as Security Trustee and BNP Paribas, as Administrative Agent. (23) | ||
Omnibus Agreement No. 1 [Fly 2016A Warehouse] dated as of December 15, 2017 among Fly Acquisition III Limited, the Lenders party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. (24) | ||
Amendment No. 2 [Fly 2016A Warehouse] dated as of September 6, 2018 among Fly Acquisition III Limited, the Lenders party thereto, Commonwealth Bank of Australia, New York Branch, as Administrative Agent and Wells Fargo Bank, National Association, as Security Trustee. (24) | ||
10.23 | Form of Loan Amendment Letter Agreement among Hobart Aviation Holdings Limited, Norddeutsche Landesbank Girozentrale and each borrower thereof. | |
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002. | ||
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002. | ||
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002. | ||
Consent of Deloitte & Touche LLP. | ||
101 | The following materials from the Company’s Annual Report on Form 20-F for the year ended December 31, |
(1) | Previously filed with the Registration Statement on Form F-1, File No. 333-145994. |
(2) | Previously filed as an exhibit on Form 6-K dated June 30, 2010. |
(3) | Previously filed as an exhibit on Form 6-K dated May 7, 2010. |
(4) | Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2011. |
(5) | Previously filed as an exhibit on Form 6-K dated November 13, 2012. |
(6) | Confidential treatment has been requested with certain portions of this exhibit. This exhibit omits the information subject to this confidential treatment request. The omitted information has been filed separately with the Securities and Exchange Commission. |
(7) | Previously filed as an exhibit on Form 6-K dated December 11, 2013. |
(8) | Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2012. |
(9) | Previously filed as an exhibit on Form 6-K dated August 6, 2013. |
(10) | Previously filed as an exhibit on Form 6-K dated October 3, 2014. |
(11) | Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2013. |
(12) | Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2014. |
(13) | Previously filed as an exhibit on Form 6-K dated August 5, 2015. |
(14) | Previously filed as an exhibit on Form 6-K dated May 19, 2016. |
(15) | Previously filed as an exhibit on Form 6-K dated October 20, 2016. |
(16) | Previously filed as an exhibit on Form 6-K dated November 17, 2016. |
(17) | Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2016. |
(18) | Previously filed as an exhibit on Form 6-K dated May 1, 2017. |
(19) | Previously filed as an exhibit on Form 6-K dated October 16, 2017. |
(20) | Previously filed as an exhibit on Form 6-K dated November 1, 2017. |
(21) | Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2017. |
(22) | Previously filed as an exhibit on Form 6-K dated May 8, 2018. |
(23) | Previously filed as an exhibit on Form 6-K dated August 24, 2018. |
(24) | Previously filed as an exhibit on Form 6-K dated November 9, 2018. |
Fly Leasing Limited | |||
By: | /s/ Colm Barrington | ||
Colm Barrington | |||
Chief Executive Officer and Director | |||