Industry & Business

Dublin’s FLY leasing to return $100m to shareholders

Dublin’s FLY leasing to return $100m to shareholders

November 13
12:59 2015

fly leasingDublin-based aircraft leasing company FLY Leasing has announced adjusted net income of $32.3m (€30.1m) for the third quarter, while the firm invested $214m (€200m) in new aircraft during the period.

Between July and September FLY also completed sales for 15 aircraft and executed an agreement to sell 12 older aircraft.

Alongside its Q3 results, the leasing company announced it is to return $100m (€93m) to its shareholders.

It will return the money to shareholders via three methods. It’s making $75m available for a modified Dutch auction tender offer. Another $25m will be used for an open market repurchase programme, and $10m in additional open market purchases will be made by BBAM shareholders.

BBAM is the world’s third-largest aircraft leasing company and was formerly known as Babcock and Brown Aircraft Management. A management buyout of the business took place in 2010.

Commenting on the results, FLY CEO Colm Barrington said: “Our third quarter results demonstrate our progress in selling older and underperforming assets, enhancing our fleet metrics and reducing costs.

“Today we announced the next step in FLY’s transformation: a $100 million share repurchase programme that will replace our dividend. The tender offer and open market share repurchase announced today will accelerate the return of capital to shareholders and will drive improved return on equity and earnings per share for FLY,” he added.

FLY has entered into agreements to sell 57 aircraft with an average age of 13 years. These sales, combined with the purchase of seven newer aircraft, helped to reduce the average fleet age at the company to seven years by the end of Q3.

Commenting on the fleet age Mr Barrington said: “Our aircraft sales have generated significant levels of investible cash, enabling us to simultaneously invest in newer, higher yielding aircraft and accelerate the return of capital to our shareholders.”

Previous to his role as FLY CEO, Mr Barrington was Aer Lingus chairman.

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