FLY Stock Price Increased Over 20% Pre-Market: Why It Happened

By Amit Chowdhry ● March 29, 2021
  • The stock price of Fly Leasing Ltd (NYSE: FLY) increased by over 20% pre-market. This is why it happened.

The stock price of Fly Leasing Ltd (NYSE: FLY) – a global leader in aircraft leasing – increased by over 20% pre-market. Investors are responding to an affiliate of Carlyle Aviation Partners, the commercial aviation investment and servicing arm within The Carlyle Group’s $56 billion Global Credit platform, announcing a deal to buy Fly Leasing for $17.05 per share.

Under the terms of the deal, FLY shareholders will receive $17.05 per share in cash, representing a total equity value of approximately $520 million. And the total enterprise value of the transaction is approximately $2.36 billion. FLY’s portfolio of 84 aircraft and seven engines is on lease to 37 airlines in 22 countries.

The per share cash consideration represents a premium of approximately 29% to FLY’s closing price on March 26, 2021 and a 43% premium to the volume-weighted average share price during the last 30 trading days. And the Board of Directors of FLY has approved the Merger Agreement, acting upon the recommendation of a special committee appointed by the Board of Directors and consisting solely of independent and disinterested directors, and has recommended that FLY shareholders vote in favor of the transaction.

The deal is expected to close in the third quarter of 2021 and is subject to customary closing conditions, including applicable regulatory clearance and the approval of FLY’s shareholders. And given the pending transaction, FLY will not host a first quarter earnings call.

KEY QUOTE:

“This transaction represents strong value for FLY shareholders at a time when airlines are facing an extremely difficult environment and smaller aircraft lessors are disadvantaged in the debt markets. After a thorough review and evaluation of its options, FLY’s Board of Directors enthusiastically recommends this transaction to its shareholders.”

— Colm Barrington, CEO of FLY

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.