FTAI Aviation dips from record as Fortress Investment offloads in secondary offering

FTAI Aviation

29/05/2024 14:09

** FTAI Aviation's  FTAI.O  shares down 3.5% at $81.67
premarket after overnight secondary offering priced
    ** Jet engine lessor late Tues announced ~2.1 mln shares
sold by Fortress Investment Group (FIG) and FIG co-founder,
Wesley Edens, for total gross proceeds of ~$171.4 mln with
Citigroup as sole underwriter
    ** Offering priced at $82, 3.1% discount to stock's record
high close of $84.65
    ** FTAI has ~100.2 mln shares outstanding for ~$8.5 bln
market cap
    ** Early Tues, FTAI announced management internalization,
and termination of FIG's role as external manager, saying it
would result in approx $30 mln of initial annualized cost
savings
    ** As part of internalization, FTAI agreed to pay $150 mln
and issue ~1.9 mln shares to FIG, and reimburse its accrued
expenses
    ** FTAI's shares have gained 82% YTD and have tripled over
the past 12 months through Tues

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))