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 | |
33 | |
33 | |
PART II | |
PART III | |
(Dollars in thousands, except per share data) Years ended | ||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | (Dollars in thousands, except per share data) Years ended | |||||||||||||||||||||||||||||||||||
As restated | As restated | As restated | As restated | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Statement of income data: | ||||||||||||||||||||||||||||||||||||||||
Operating lease revenue | $ | 429,691 | $ | 406,563 | $ | 351,792 | $ | 356,102 | $ | 230,716 | $ | 346,894 | $ | 313,582 | $ | 429,691 | $ | 406,563 | $ | 351,792 | ||||||||||||||||||||
Gain on sale of aircraft | 28,959 | 14,761 | 5,421 | 7,892 | 9,137 | 3,926 | 27,195 | 28,959 | 14,761 | 5,421 | ||||||||||||||||||||||||||||||
Gain on sale of investment in unconsolidated subsidiary | — | — | — | 36,882 | — | |||||||||||||||||||||||||||||||||||
Total revenues | 462,397 | 425,548 | 360,634 | 411,167 | 248,789 | 353,251 | 345,039 | 462,397 | 425,548 | 360,634 | ||||||||||||||||||||||||||||||
Total expenses | 434,200 | 356,673 | 303,560 | 368,670 | 242,637 | 339,321 | 381,428 | 434,200 | 356,673 | 303,560 | ||||||||||||||||||||||||||||||
Net income | 22,798 | 60,184 | 53,940 | 38,234 | 1,341 | |||||||||||||||||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 2,598 | (29,112 | ) | 22,798 | 60,184 | 53,940 | ||||||||||||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.52 | $ | 1.42 | $ | 1.55 | $ | 1.45 | $ | 0.04 | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 1.42 | $ | 1.55 | |||||||||||||||||||
Diluted | $ | 0.52 | $ | 1.42 | $ | 1.55 | $ | 1.44 | $ | 0.04 | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | $ | 1.42 | $ | 1.55 | |||||||||||||||||||
Dividends declared and paid per share | $ | 1.00 | $ | 1.00 | $ | 0.88 | $ | 0.84 | $ | 0.80 | $ | — | $ | — | $ | 1.00 | $ | 1.00 | $ | 0.88 |
(Dollars in thousands, except per share data) As of December 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Balance sheet data: | ||||||||||||||||||||
Total assets | $ | 3,595,615 | $ | 3,447,009 | $ | 3,424,480 | $ | 4,218,408 | $ | 3,660,679 | ||||||||||
Total liabilities | 3,051,906 | 2,853,774 | 2,767,516 | 3,462,154 | 2,918,583 | |||||||||||||||
Total shareholders’ equity | 543,709 | 593,235 | 656,964 | 756,254 | 742,096 | |||||||||||||||
Number of shares outstanding | 27,983,352 | 32,256,440 | 35,671,400 | 41,432,998 | 41,306,338 |
(Dollars in thousands, except per share data) As of December 31, | ||||||||||||||||||||
2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||
Balance sheet data: | As restated | As restated | As restated | As restated | ||||||||||||||||
Total assets | $ | 3,428,275 | $ | 4,218,408 | $ | 3,660,679 | $ | 2,960,926 | $ | 3,199,742 | ||||||||||
Total liabilities | 2,771,311 | 3,462,154 | 2,918,583 | 2,437,115 | 2,755,465 | |||||||||||||||
Total shareholders' equity | 656,964 | 756,254 | 742,096 | 523,811 | 444,277 | |||||||||||||||
Number of shares outstanding | 35,671,400 | 41,432,998 | 41,306,338 | 28,040,305 | 25,685,527 |
· | 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 is subject to a lease and, if so, whether the lease terms are favorable to the lessor; |
· | the age of our aircraft; |
· | airworthiness directives and service bulletins; |
· | aircraft noise and emission standards; |
· | any tax, customs, regulatory and other legal requirements that must be satisfied when an aircraft is purchased, sold or re-leased; |
· | compatibility of our aircraft configurations or specifications with other aircraft owned by operators of that type; 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; |
general economic conditions affecting our |
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; |
interest and foreign exchange rates; |
airline restructurings and bankruptcies; |
increased supply due to the sale of aircraft portfolios; |
availability and cost of credit; |
manufacturer production levels and technological innovation; |
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 investments; |
significantly increase our interest expense and financial leverage to the extent we incur additional debt to finance acquisitions and investments; |
incur or assume unanticipated liabilities, losses or costs associated with the aircraft that we acquire, or investments we may make; or |
incur other significant charges, including asset impairment or restructuring charges. |
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 disasters; |
· | increases in operating costs, including the availability and cost of jet fuel and labor costs; |
· | labor difficulties; |
· | economic and financial conditions and currency fluctuations in the countries and regions in which the lessee operates; and |
· | governmental regulation of, or affecting, the air transportation business, including noise and emissions regulations, climate change initiatives and age limitations. |
· | 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 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 |
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 days; |
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 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; |
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 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. |
Bankruptcy or insolvency of BBAM LP; |
BBAM LP ceases to own, directly or indirectly, at least 50% of the Servicer; |
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 |
50% or more of the |
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 |
restrictions on our |
lessee, geographical and other concentration requirements limit our flexibility in leasing our aircraft; |
requirements to obtain the consent of third parties including lenders, the insurance policy provider and rating agency confirmations for certain actions; and |
restrictions on our |
making it more difficult for us to satisfy our debt obligations with respect to the notes and our other debt; |
limiting our ability to obtain additional financing to fund the acquisition of aircraft or for other general corporate requirements; |
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 aircraft acquisitions and other general corporate purposes; |
increasing our vulnerability to general adverse economic and industry conditions; |
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 interest; |
limiting our flexibility in planning for and reacting to changes in the aircraft industry; |
placing us at a disadvantage compared to other competitors; and |
increasing our cost of borrowing. |
Facility(1) | Amount Outstanding at December 31, | Number of Aircraft Financed | Maturity Date | |||||
Securitization Notes | $ | November 2033 | ||||||
Nord LB Facility | $ | November 2018 |
(1) | Excludes |
(2) | Excludes unamortized debt |
· | announcements concerning our competitors, the airline industry or the economy in general; |
· | announcements concerning the availability of the type of aircraft we own; |
· | general and industry-specific economic conditions; |
· | changes in the price of aircraft fuel; |
· | changes in financial estimates or recommendations by securities analysts or failure to meet analysts’ performance expectations; |
· | any increased indebtedness we may incur in the future; |
· | speculation or reports by the press or investment community with respect to us or our industry in general; |
· | announcements by us or our competitors of significant contracts, acquisitions, dispositions, strategic partnerships, joint ventures or capital commitments; |
· | changes or proposed changes in laws or regulations affecting the airline industry or enforcement of these laws and regulations, or announcements relating to these matters; and |
· | general market, political and economic conditions, including any such conditions and local conditions in the markets in which our lessees are located. |
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 sell; |
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 vote; |
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 approval; |
advance notice requirements by shareholders for director nominations and actions to be taken at annual meetings; and |
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 meeting. |
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 Berlin | A321-200 | Narrow-body | 2015 | Air China | B737-800 | Narrow-body | 2007 | ||||
5. | Air Berlin | A330-200 | Wide-body | 2001 | Air Europa | B787-8 | Wide-body | 2017 | ||||
6. | Air China | B737-800 | Narrow-body | 2007 | Air India | B787-8 | Wide-body | 2015 | ||||
7. | Air China | B737-800 | Narrow-body | 2002 | Air India | B787-8 | Wide-body | 2014 | ||||
8. | Air France (1) | A340-300 | Wide-body | 1993 | Air India | B787-8 | Wide-body | 2014 | ||||
9. | Air Italy | B767-300ER | Wide-body | 1997 | Air Moldova | A319-100 | Narrow-body | 2006 | ||||
10. | Air Moldova | A319-100 | Narrow-body | 2006 | American Airlines | B737-800 | Narrow-body | 2013 | ||||
11. | American Airlines | B737-800 | Narrow-body | 2013 | American Airlines | A319-100 | Narrow-body | 2000 | ||||
12. | Chang'An Airlines | B737-800 | Narrow-body | 2006 | American Airlines | A319-100 | Narrow-body | 2000 | ||||
13. | Eastern Airlines | B737-800 | Narrow-body | 2006 | American Airlines | A319-100 | Narrow-body | 2000 | ||||
14. | easyJet | A319-100 | Narrow-body | 2007 | American Airlines | A319-100 | Narrow-body | 2000 | ||||
15. | easyJet | A319-100 | Narrow-body | 2004 | Chang’An Airlines | B737-800 | Narrow-body | 2006 | ||||
16. | easyJet | A319-100 | Narrow-body | 2004 | easyJet | A319-100 | Narrow-body | 2007 | ||||
17. | Ethiopian Airlines | B777-200LRF (2) | Wide-body | 2015 | easyJet | A319-100 | Narrow-body | 2004 | ||||
18. | Ethiopian Airlines | B777-200LRF (2) | Wide-body | 2015 | easyJet | A319-100 | Narrow-body | 2004 | ||||
19. | Finnair | A320-200 | Narrow-body | 2003 | Ethiopian Airlines | B777-200LRF (1) | Wide-body | 2015 | ||||
20. | flydubai | B737-800 | Narrow-body | 2010 | Ethiopian Airlines | B777-200LRF (1) | Wide-body | 2015 | ||||
21. | Frontier | A319-100 | Narrow-body | 2001 | Finnair | A320-200 (2) | Narrow-body | 2003 | ||||
22. | Garuda Indonesia | B737-800 | Narrow-body | 2010 | flydubai | B737-800 | Narrow-body | 2010 | ||||
23. | Garuda Indonesia | B737-800 | Narrow-body | 2010 | Frontier | A319-100 | Narrow-body | 2001 | ||||
24. | Icelandair | B757-200SF (2) | Narrow-body | 1990 | Garuda Indonesia | B737-800 | Narrow-body | 2010 | ||||
25. | IZair | B737-800 | Narrow-body | 2007 | Garuda Indonesia | B737-800 | Narrow-body | 2010 | ||||
26. | IZair | B737-800 | Narrow-body | 2006 | Go2Sky | B737-800 | Narrow-body | 1998 | ||||
27. | Jet Airways | B737-800 | Narrow-body | 2014 | Icelandair | B757-200SF (1) | Narrow-body | 1990 | ||||
28. | Jet Airways | B737-800 | Narrow-body | 2014 | Israir Airlines | A320-200 | Narrow-body | 2016 | ||||
29. | Jet Airways | B737-800 | Narrow-body | 2014 | IZair | B737-800 | Narrow-body | 2007 | ||||
30. | Jet Lite | B737-700 | Narrow-body | 2002 | IZair | B737-800 | Narrow-body | 2006 | ||||
31. | Jetstar Pacific Airlines | A320-200 | Narrow-body | 2005 | Jet Airways | B737-800 | Narrow-body | 2014 | ||||
32. | LATAM | B787-8 | Wide-body | 2013 | Jet Airways | B737-800 | Narrow-body | 2014 | ||||
33. | Lucky Air Airlines | B737-800 | Narrow-body | 2007 | Jet Airways | B737-800 | Narrow-body | 2014 | ||||
34. | Lucky Air Airlines | B737-800 | Narrow-body | 2007 | Jet Lite | B737-700 | Narrow-body | 2002 | ||||
35. | Nok Airlines | B737-800 | Narrow-body | 2015 | Jetstar Pacific Airlines | A320-200 | Narrow-body | 2005 | ||||
36. | Nok Airlines | B737-800 | Narrow-body | 2006 | LATAM | B787-8 | Wide-body | 2013 | ||||
37. | Nok Airlines | B737-800 | Narrow-body | 2006 | Lucky Air Airlines | B737-800 | Narrow-body | 2007 | ||||
38. | Philippine Airlines | A321-200 | Narrow-body | 2014 | Lucky Air Airlines | B737-800 | Narrow-body | 2007 | ||||
39. | Philippine Airlines | A321-200 | Narrow-body | 2014 | Malaysian Airlines | B737-800 | Narrow-body | 2012 | ||||
40. | Philippine Airlines | A330-300 | Wide-body | 2013 | Malaysian Airlines | B737-800 | Narrow-body | 2011 | ||||
41. | Philippine Airlines | A330-300 | Wide-body | 2013 | Malaysian Airlines | B737-800 | Narrow-body | 2011 | ||||
42. | Qantas | A320-200 | Narrow-body | 2005 | Nok Airlines | B737-800 | Narrow-body | 2015 | ||||
43. | Shandong Airlines | B737-800 | Narrow-body | 2013 | Oman Air S.A.O.C. | B737-800 | Narrow-body | 2009 | ||||
44. | Shandong Airlines | B737-800 | Narrow-body | 2013 | Oman Air S.A.O.C. | B737-800 | Narrow-body | 2009 | ||||
45. | Silk Air | A320-200 | Narrow-body | 2004 | Philippine Airlines | A321-200 | Narrow-body | 2014 | ||||
46. | South African Airways | A319-100 | Narrow-body | 2004 | Philippine Airlines | A321-200 | Narrow-body | 2014 | ||||
47. | Spicejet | B737-900ER | Narrow-body | 2008 | Philippine Airlines | A330-300 | Wide-body | 2013 | ||||
48. | Spicejet | B737-900ER | Narrow-body | 2007 | Philippine Airlines | A330-300 | Wide-body | 2013 | ||||
49. | Sun Express (Germany) | B737-800 | Narrow-body | 1998 | PT Lion Mentari | B737-MAX 8 | Narrow-body | 2017 | ||||
50. | Sun Express (Turkey) | B737-800 | Narrow-body | 2008 | PT Lion Mentari | B737-MAX 8 | Narrow-body | 2017 | ||||
51. | Sun Express (Turkey) | B737-800 | Narrow-body | 2007 | PT. Batik Air Indonesia | A320-200 | Narrow-body | 2017 | ||||
52. | Sunwing Airlines | B737-800 | Narrow-body | 2006 | Shandong Airlines | B737-800 | Narrow-body | 2013 | ||||
53. | Sunwing Airlines | B737-800 | Narrow-body | 2006 | Shandong Airlines | B737-800 | Narrow-body | 2013 | ||||
54. | TAM | A320-200 | Narrow-body | 2006 | Silk Air | A320-200 | Narrow-body | 2004 | ||||
55. | Thomas Cook (3) | A330-300 | Wide-body | 2000 | Spicejet | B737-800 | Narrow-body | 2010 | ||||
56. | THY | A320-200 | Narrow-body | 2005 | Spicejet | B737-800 | Narrow-body | 2010 | ||||
57. | THY | A320-200 | Narrow-body | 2005 | ||||||||
58. | THY | A320-200 | Narrow-body | 2005 | ||||||||
59. | Titan Airways | B737-300QC (2) | Narrow-body | 1991 | ||||||||
60. | Transavia France | B737-800 | Narrow-body | 2008 | ||||||||
61. | Transavia France | B737-800 | Narrow-body | 2008 | ||||||||
62. | Travel Service | B737-800 | Narrow-body | 2010 | ||||||||
63. | Travel Service | B737-800 | Narrow-body | 2010 | ||||||||
64. | TUI Travel Aviation Finance | B737-800 | Narrow-body | 2010 | ||||||||
65. | TUI Travel Aviation Finance | B757-200 | Narrow-body | 1999 | ||||||||
66. | TUI Travel Aviation Finance | B757-200 | Narrow-body | 1999 | ||||||||
67. | US Airways | A319-100 | Narrow-body | 2000 | ||||||||
68. | US Airways | A319-100 | Narrow-body | 2000 | ||||||||
69. | US Airways | A319-100 | Narrow-body | 2000 |
Lessee | Aircraft Type | Airframe Type | Date of Manufacture | |||||||||
57. | Spicejet | B737-800 | Narrow-body | 2007 | ||||||||
58. | Spicejet | B737-800 | Narrow-body | 2007 | ||||||||
59. | Spicejet | B737-900ER | Narrow-body | 2007 | ||||||||
60. | Sun Express (Turkey) | B737-800 | Narrow-body | 2007 | ||||||||
61. | Sunwing Airlines | B737-800 | Narrow-body | 2006 | ||||||||
62. | Sunwing Airlines | B737-800 | Narrow-body | 2006 | ||||||||
63. | Swift Air | B737-800 | Narrow-body | 2006 | ||||||||
64. | TAM | A320-200 | Narrow-body | 2006 | ||||||||
65. | TAROM S.A. | B737-800 | Narrow-body | 2017 | ||||||||
66. | THY | A320-200 | Narrow-body | 2005 | ||||||||
67. | THY | A320-200 | Narrow-body | 2005 | ||||||||
68. | THY | A320-200 | Narrow-body | 2005 | ||||||||
69. | Transavia France | B737-800 | Narrow-body | 2008 | ||||||||
70. | US Airways | A319-100 | Narrow-body | 2000 | Transavia France | B737-800 | Narrow-body | 2008 | ||||
71. | Virgin America | A320-200 | Narrow-body | 2007 | Transavia France | B737-800 | Narrow-body | 2007 | ||||
72. | Virgin America | A320-200 | Narrow-body | 2006 | Transavia France | B737-800 | Narrow-body | 2007 | ||||
73. | Virgin America | A320-200 | Narrow-body | 2006 | Travel Service | B737-800 | Narrow-body | 2010 | ||||
74. | Virgin Atlantic | A340-600 | Wide-body | 2006 | Travel Service | B737-800 | Narrow-body | 2010 | ||||
75. | Virgin Atlantic | A340-600 | Wide-body | 2006 | TUI Travel Aviation Finance | B737-800 | Narrow-body | 2010 | ||||
76. | Vueling Airlines | A320-200 | Narrow-body | 2007 | TUI Travel Aviation Finance | B757-200 | Narrow-body | 1999 | ||||
77. | Vueling Airlines | A320-200 | Narrow-body | 2007 | TUI Travel Aviation Finance | B757-200 | Narrow-body | 1999 | ||||
78. | White Airways | A320-200 | Narrow-body | 1995 | Virgin America | A320-200 | Narrow-body | 2007 | ||||
79. | Off lease (1) | B737-800 | Narrow-body | 1998 | Virgin Atlantic | A340-600 | Wide-body | 2006 | ||||
80. | Off lease (1) | B737-800 | Narrow-body | 1998 | Virgin Atlantic | A340-600 | Wide-body | 2006 | ||||
81. | Vueling Airlines | A320-200 | Narrow-body | 2007 | ||||||||
82. | Vueling Airlines | A320-200 | Narrow-body | 2007 | ||||||||
83. | Yakutia | B737-800 | Narrow-body | 2002 | ||||||||
84. | Off lease | A321-200 | Narrow-body | 2015 | ||||||||
85. | Off lease (3) | A330-200 | Wide-body | 2001 |
(1) |
(2) |
(3) |
Lessee | Aircraft Type | Airframe Type | Date of Manufacture | |||||
1. | Air Serbia (1) | A319-100 | Narrow-body | 2005 | ||||
2. | Air Serbia (1) | A320-200 | Narrow-body | 2005 | ||||
3. | Avion Express (1) | A320-200 | Narrow-body | 2003 | ||||
4. | Avion Express (1) | A320-200 | Narrow-body | 1997 | ||||
5. | British Airways (1) | A320-200 | Narrow-body | 2002 | ||||
6. | Enter Air (1) | B737-800 | Narrow-body | 1999 | ||||
7. | Etihad Airways (1) | A319-100 | Narrow-body | 2000 | ||||
8. | Etihad Airways (1) | A319-100 | Narrow-body | 1999 | ||||
9. | Qantas (1) | B737-800 | Narrow-body | 2005 | ||||
10. | Sun Express (Germany) | B737-800 | Narrow-body | 1999 | ||||
11. | Sun Express (Turkey) | B737-800 | Narrow-body | 1998 | ||||
12. | Virgin America (1) | A319-100 | Narrow-body | 2008 | ||||
13. | Volaris (1) | A319-100 | Narrow-body | 2007 |
Aircraft Manufacturer | Aircraft Type | Number of Aircraft | |||
Airbus | A319-100 | ||||
A320-200(1) | |||||
A321-200 | 3 | ||||
A330-200 | 1 | ||||
A330-300 | |||||
A340-600 | 2 | ||||
Total | |||||
Boeing | 4 | ||||
B737-MAX 8 | 2 | ||||
B737-800 | 39 | ||||
B737-900ER | 1 | ||||
B757-200 | 2 | ||||
B757-200SF | |||||
1 | |||||
B777-200LRF | 2 | ||||
B787-8 | |||||
Total | |||||
Total |
(1) | Includes an investment in |
Airframe Type | Number of Aircraft | |
Narrow-body(1) (2) | ||
Wide-body | ||
Total |
(1) | Includes an investment in finance lease. |
(2) | Includes one freighter. |
(3) | Includes two freighters. |
Years ended | ||||||||||||||||||||||||||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Years ended | |||||||||||||||||||||||||||||||||||||||||||||||
As restated | As restated | As restated | As restated | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||||||||
Europe: | ||||||||||||||||||||||||||||||||||||||||||||||||
Spain | $ | 11,199 | 3 | % | $ | 5,361 | 2 | % | $ | 9,191 | 2 | % | ||||||||||||||||||||||||||||||||||||
Turkey | 17,103 | 5 | % | 24,593 | 8 | % | 29,847 | 7 | % | |||||||||||||||||||||||||||||||||||||||
United Kingdom | $ | 50,742 | 12 | % | $ | 46,281 | 11 | % | $ | 48,668 | 14 | % | 29,182 | 8 | % | 34,498 | 11 | % | 50,742 | 12 | % | |||||||||||||||||||||||||||
Turkey | 29,847 | 7 | % | 27,069 | 7 | % | 13,702 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Germany | 26,457 | 8 | % | 13,836 | 4 | % | 18,201 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Russia | 24,095 | 6 | % | 9,017 | 2 | % | 10,288 | 3 | % | 1,927 | 1 | % | 3,141 | 1 | % | 24,095 | 6 | % | ||||||||||||||||||||||||||||||
Other (1) | 74,171 | 17 | % | 73,660 | 19 | % | 79,359 | 22 | % | 27,984 | 8 | % | 27,319 | 8 | % | 46,779 | 11 | % | ||||||||||||||||||||||||||||||
Europe — Total | 178,855 | 42 | % | 156,027 | 39 | % | 152,017 | 43 | % | 113,852 | 33 | % | 108,748 | 34 | % | 178,855 | 42 | % | ||||||||||||||||||||||||||||||
Asia and South Pacific: | ||||||||||||||||||||||||||||||||||||||||||||||||
India | 64,381 | 18 | % | 39,640 | 13 | % | 19,572 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Philippines | 38,677 | 9 | % | 12,947 | 3 | % | — | — | 29,825 | 9 | % | 29,129 | 9 | % | 38,677 | 9 | % | |||||||||||||||||||||||||||||||
Indonesia | 16,308 | 5 | % | 8,320 | 3 | % | 7,915 | 2 | % | |||||||||||||||||||||||||||||||||||||||
China | 37,943 | 9 | % | 47,049 | 12 | % | 41,332 | 12 | % | 22,611 | 6 | % | 23,882 | 8 | % | 37,943 | 9 | % | ||||||||||||||||||||||||||||||
India | 19,572 | 4 | % | 32,675 | 8 | % | 19,854 | 6 | % | |||||||||||||||||||||||||||||||||||||||
Other | 39,056 | 9 | % | 45,855 | 11 | % | 32,840 | 9 | % | 19,263 | 6 | % | 18,967 | 5 | % | 31,141 | 7 | % | ||||||||||||||||||||||||||||||
Asia and South Pacific — Total | 135,248 | 31 | % | 138,526 | 34 | % | 94,026 | 27 | % | 152,388 | 44 | % | 119,938 | 38 | % | 135,248 | 31 | % | ||||||||||||||||||||||||||||||
Mexico, South and Central America: | ||||||||||||||||||||||||||||||||||||||||||||||||
Chile | 24,336 | 6 | % | 28,116 | 7 | % | 10,055 | 3 | % | 8,939 | 3 | % | 8,939 | 3 | % | 24,336 | 6 | % | ||||||||||||||||||||||||||||||
Other | 16,732 | 4 | % | 21,733 | 5 | % | 33,013 | 9 | % | 8,626 | 2 | % | 8,768 | 3 | % | 16,732 | 4 | % | ||||||||||||||||||||||||||||||
Mexico, South and Central America — Total | 41,068 | 10 | % | 49,849 | 12 | % | 43,068 | 12 | % | 17,565 | 5 | % | 17,707 | 6 | % | 41,068 | 10 | % | ||||||||||||||||||||||||||||||
North America: | ||||||||||||||||||||||||||||||||||||||||||||||||
North America: | ||||||||||||||||||||||||||||||||||||||||||||||||
United States | 37,316 | 9 | % | 41,531 | 10 | % | 40,482 | 12 | % | 17,647 | 5 | % | 24,591 | 8 | % | 37,316 | 9 | % | ||||||||||||||||||||||||||||||
Other | 6,380 | 1 | % | 3,429 | 1 | % | 3,891 | 1 | % | 6,237 | 2 | % | 6,223 | 2 | % | 6,380 | 1 | % | ||||||||||||||||||||||||||||||
North America — Total | 43,696 | 10 | % | 44,960 | 11 | % | 44,373 | 13 | % | 23,884 | 7 | % | 30,814 | 10 | % | 43,696 | 10 | % | ||||||||||||||||||||||||||||||
Middle East and Africa — Total: | ||||||||||||||||||||||||||||||||||||||||||||||||
Middle East and Africa: | ||||||||||||||||||||||||||||||||||||||||||||||||
Ethiopia | 22,808 | 5 | % | 4,501 | 1 | % | 4,416 | 1 | % | 30,018 | 9 | % | 30,084 | 10 | % | 22,808 | 5 | % | ||||||||||||||||||||||||||||||
Other | 8,315 | 2 | % | 12,700 | 3 | % | 13,892 | 4 | % | 9,918 | 2 | % | 8,357 | 2 | % | 8,315 | 2 | % | ||||||||||||||||||||||||||||||
Middle East and Africa — Total | 31,123 | 7 | % | 17,201 | 4 | % | 18,308 | 5 | % | 39,936 | 11 | % | 38,441 | 12 | % | 31,123 | 7 | % | ||||||||||||||||||||||||||||||
Total Lease Revenue | $ | 429,990 | 100 | % | $ | 406,563 | 100 | % | $ | 351,792 | 100 | % | $ | 347,625 | 100 | % | $ | 315,648 | 100 | % | $ | 429,990 | 100 | % |
(1) | Includes $0.7 million, $2.1 million and $0.3 million of finance lease |
Airframe Type | |||||
Year of Scheduled Lease Expiration | Narrow | Wide | Total | ||
Off-lease | 1 | 1 | 2 | ||
2018 | 7 | — | 7 | ||
2019 | 15 | 2 | 17 | ||
2020 | 11 | (1) | — | 11 | |
2021 | 8 | — | 8 | ||
2022 | 10 | — | 10 | ||
2023 | 6 | — | 6 | ||
2024 | 4 | — | 4 | ||
2025 | 3 | (2) | 3 | 6 | |
2026 | 2 | — | 2 | ||
2027 | 2 | (3) | 2 | 4 | |
2028 | 1 | 3 | 4 | ||
2029 | 3 | 1 | 4 | ||
Total | 73 | 12 | 85 |
Airframe Type | ||||||||
Year of Scheduled Lease Expiration | Narrow (1) | Wide (2) | Total | |||||
Off-lease | 2 | — | 2 | |||||
2016 | 5 | 1 | 6 | |||||
2017 | 11 | — | 11 | |||||
2018 | 6 | 3 | 9 | |||||
2019 | 10 | — | 10 | |||||
2020 | 6 | — | 6 | |||||
2021 | 10 | 1 | 11 | |||||
2022 | 6 | — | 6 | |||||
2023 | 4 | — | 4 | |||||
2024 | 3 | — | 3 | |||||
2025 | 2 | 4 | (3) | 6 | ||||
2026 | 2 | — | 2 | |||||
2027 | 2 | 2 | 4 | |||||
Total | 69 | 11 | 80 |
(1) | Includes one |
(2) | Includes |
(3) | Includes |
Lessee | Sublessee | |
Air | ||
Travel Service, a.s. | Sunwing Airlines Inc. |
Retained earnings at December 31, 2012 – as previously reported | $ | 83,138 | ||
Adjustments | (8,191 | ) | ||
Retained earnings at December 31, 2012 – as restated | $ | 74,947 |
December 31, 2014 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance sheet data: | As previously reported | Maintenance rights adjustments | Other adjustments | As restated | ||||||||||||
Flight equipment held for operating lease, net | $ | 3,705,407 | $ | (143,336 | ) | $ | (5,187 | ) | $ | 3,556,884 | ||||||
Maintenance rights, net | — | 144,920 | — | 144,920 | ||||||||||||
Other assets, net | 31,608 | — | (2,659 | ) | 28,949 | |||||||||||
Secured borrowings, net | 2,335,328 | — | (2,659 | ) | 2,332,669 | |||||||||||
Deferred tax liability, net | 16,289 | 294 | (1,277 | ) | 15,306 | |||||||||||
Retained earnings | 117,402 | 1,290 | (3,910 | ) | 114,782 |
Year Ended December 31, 2014 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
As previously reported | Maintenance rights adjustments | Other adjustments | As restated | |||||||||||||
Operating lease revenue | $ | 404,668 | $ | 1,895 | $ | — | $ | 406,563 | ||||||||
Equity earnings from unconsolidated subsidiary | 2,456 | — | 1,106 | 3,562 | ||||||||||||
Gain on sale of aircraft | 18,878 | (4,564 | ) | 447 | 14,761 | |||||||||||
Depreciation | 175,547 | (8,290 | ) | (274 | ) | 166,983 | ||||||||||
Aircraft impairment | — | — | 1,200 | 1,200 | ||||||||||||
Selling, general and administrative | 41,148 | — | (115 | ) | 41,033 | |||||||||||
Net (gain) loss on extinguishment of debt | (3,922 | ) | 1,713 | 15 | (2,194 | ) | ||||||||||
Maintenance and other costs | 6,960 | — | 100 | 7,060 | ||||||||||||
Provision for income taxes | 8,263 | 751 | (323 | ) | 8,691 | |||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.32 | $ | 1.42 | ||||||||||||
Diluted | $ | 1.32 | $ | 1.42 |
Year Ended December 31, 2013 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
As previously reported | Maintenance rights adjustments | Other adjustments | As restated | |||||||||||||
Operating lease revenue | $ | 359,409 | $ | (8,062 | ) | 445 | $ | 351,792 | ||||||||
Equity earnings from unconsolidated subsidiary | 1,871 | — | (380 | ) | 1,491 | |||||||||||
Gain on sale of aircraft | 6,277 | (856 | ) | — | 5,421 | |||||||||||
Depreciation | 146,400 | (7,854 | ) | (210 | ) | 138,336 | ||||||||||
Aircraft impairment | 8,825 | (2,659 | ) | — | 6,166 | |||||||||||
Selling, general and administrative | 37,418 | — | 2,175 | 39,593 | ||||||||||||
Net (gain) loss on extinguishment of debt | (15,881 | ) | — | 734 | (15,147 | ) | ||||||||||
Maintenance and other costs | 15,454 | — | 22 | 15,476 | ||||||||||||
Provision for income taxes | 5,659 | 118 | (2,643 | ) | 3,134 | |||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.51 | $ | 1.55 | ||||||||||||
Diluted | $ | 1.50 | $ | 1.55 |
● | Flight equipment where original |
● | 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. |
● |
● | Operating lease revenue. We receive lease |
● | 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 by the lessee, among others. |
● | 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. |
● | Finance lease income. Revenue from |
Years ended | Increase/ (Decrease) | |||||||||||
2017 | 2016 | |||||||||||
(Dollars in thousands) | ||||||||||||
Revenues | ||||||||||||
Operating lease revenue | $ | 346,894 | $ | 313,582 | $ | 33,312 | ||||||
Finance lease revenue | 731 | 2,066 | (1,335 | ) | ||||||||
Equity earnings from unconsolidated subsidiary | 496 | 530 | (34 | ) | ||||||||
Gain on sale of aircraft | 3,926 | 27,195 | (23,269 | ) | ||||||||
Interest and other income | 1,204 | 1,666 | (462 | ) | ||||||||
Total revenues | 353,251 | 345,039 | 8,212 | |||||||||
Expenses | ||||||||||||
Depreciation | 133,227 | 120,452 | 12,775 | |||||||||
Aircraft impairment | 22,000 | 96,122 | (74,122 | ) | ||||||||
Interest expense | 127,782 | 123,161 | 4,621 | |||||||||
Selling, general and administrative | 30,671 | 30,077 | 594 | |||||||||
Ineffective, dedesignated and terminated derivatives | (192 | ) | 91 | (283 | ) | |||||||
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 14,063 | |||||||||
Maintenance and other costs | 2,524 | 2,279 | 245 | |||||||||
Total expenses | 339,321 | 381,428 | (42,107 | ) | ||||||||
Net income (loss) before provision (benefit) for income taxes | 13,930 | (36,389 | ) | 50,319 | ||||||||
Provision (benefit) for income taxes | 11,332 | (7,277 | ) | 18,609 | ||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 31,710 |
Years ended | Increase/ (Decrease) | |||||||||||
2017 | 2016 | |||||||||||
(Dollars in thousands) | ||||||||||||
Operating lease revenue: | ||||||||||||
Operating lease rental revenue | $ | 337,137 | $ | 313,976 | $ | 23,161 | ||||||
End of lease income | 17,837 | 8,918 | 8,919 | |||||||||
Amortization of lease incentives | (7,668 | ) | (8,898 | ) | 1,230 | |||||||
Amortization of lease premiums, discounts & other | (412 | ) | (414 | ) | 2 | |||||||
Total operating lease revenue | $ | 346,894 | $ | 313,582 | $ | 33,312 |
Years ended | Increase/ (Decrease) | |||||||||||||||||||||||
2015 | 2014 | Years ended | Increase/ (Decrease) | |||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | ||||||||||||||||||||||
As restated | (Dollars in thousands) | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Operating lease revenue | $ | 429,691 | $ | 406,563 | $ | 23,128 | $ | 313,582 | $ | 429,691 | $ | (116,109 | ) | |||||||||||
Finance lease income | 299 | — | 299 | |||||||||||||||||||||
Finance lease revenue | 2,066 | 299 | 1,767 | |||||||||||||||||||||
Equity earnings from unconsolidated subsidiary | 1,159 | 3,562 | (2,403 | ) | 530 | 1,159 | (629 | ) | ||||||||||||||||
Gain on sale of aircraft | 28,959 | 14,761 | 14,198 | 27,195 | 28,959 | (1,764 | ) | |||||||||||||||||
Interest and other income | 2,289 | 662 | 1,627 | 1,666 | 2,289 | (623 | ) | |||||||||||||||||
Total revenues | 462,397 | 425,548 | 36,849 | 345,039 | 462,397 | (117,358 | ) | |||||||||||||||||
Expenses | ||||||||||||||||||||||||
Depreciation | 159,732 | 166,983 | (7,251 | ) | 120,452 | 159,732 | (39,280 | ) | ||||||||||||||||
Aircraft impairment | 66,093 | 1,200 | 64,893 | 96,122 | 66,093 | 30,029 | ||||||||||||||||||
Interest expense | 145,448 | 142,519 | 2,929 | 123,161 | 145,448 | (22,287 | ) | |||||||||||||||||
Selling, general and administrative | 33,674 | 41,033 | (7,359 | ) | 30,077 | 33,674 | (3,597 | ) | ||||||||||||||||
Ineffective, dedesignated and terminated derivatives | 4,134 | 72 | 4,062 | 91 | 4,134 | (4,043 | ) | |||||||||||||||||
Net (gain) loss on extinguishment of debt | 17,491 | (2,194 | ) | 19,685 | ||||||||||||||||||||
Loss on modification and extinguishment of debt | 9,246 | 17,491 | (8,245 | ) | ||||||||||||||||||||
Maintenance and other costs | 7,628 | 7,060 | 568 | 2,279 | 7,628 | (5,349 | ) | |||||||||||||||||
Total expenses | 434,200 | 356,673 | 77,527 | 381,428 | 434,200 | (52,772 | ) | |||||||||||||||||
Net income before provision for income taxes | 28,197 | 68,875 | (40,678 | ) | ||||||||||||||||||||
Provision for income taxes | 5,399 | 8,691 | (3,292 | ) | ||||||||||||||||||||
Net income | $ | 22,798 | $ | 60,184 | $ | (37,386 | ) | |||||||||||||||||
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) | |||||||||||||||||||||||
2015 | 2014 | Years ended | Increase/ (Decrease) | |||||||||||||||||||||
(Dollars in thousands) | 2016 | 2015 | ||||||||||||||||||||||
As restated | (Dollars in thousands) | |||||||||||||||||||||||
Operating lease revenue: | ||||||||||||||||||||||||
Operating lease rental revenue | $ | 398,741 | $ | 387,835 | $ | 10,906 | $ | 313,976 | $ | 398,741 | $ | (84,765 | ) | |||||||||||
End of lease revenue | 53,760 | 41,651 | 12,109 | |||||||||||||||||||||
End of lease income | 8,918 | 53,760 | (44,842 | ) | ||||||||||||||||||||
Amortization of lease incentives | (20,527 | ) | (18,934 | ) | (1,593 | ) | (8,898 | ) | (20,527 | ) | 11,629 | |||||||||||||
Amortization of lease premiums, discounts & other | (2,283 | ) | (3,989 | ) | 1,706 | (414 | ) | (2,283 | ) | 1,869 | ||||||||||||||
Total operating lease revenue | $ | 429,691 | $ | 406,563 | $ | 23,128 | $ | 313,582 | $ | 429,691 | $ | (116,109 | ) |
Years ended | Increase/ (Decrease) | |||||||||||
2014 | 2013 | |||||||||||
(Dollars in thousands) | ||||||||||||
As restated | As restated | |||||||||||
Revenues | ||||||||||||
Operating lease revenue | $ | 406,563 | $ | 351,792 | $ | 54,771 | ||||||
Equity earnings from unconsolidated subsidiary | 3,562 | 1,491 | 2,071 | |||||||||
Gain on sale of aircraft | 14,761 | 5,421 | 9,340 | |||||||||
Interest and other income | 662 | 1,930 | (1,268 | ) | ||||||||
Total revenues | 425,548 | 360,634 | 64,914 | |||||||||
Expenses | ||||||||||||
Depreciation | 166,983 | 138,336 | 28,647 | |||||||||
Aircraft impairment | 1,200 | 6,166 | (4,966 | ) | ||||||||
Interest expense | 142,519 | 120,399 | 22,120 | |||||||||
Selling, general and administrative | 41,033 | 39,593 | 1,440 | |||||||||
Ineffective, dedesignated and terminated derivatives | 72 | (1,263 | ) | 1,335 | ||||||||
Net gain on extinguishment of debt | (2,194 | ) | (15,147 | ) | 12,953 | |||||||
Maintenance and other costs | 7,060 | 15,476 | (8,416 | ) | ||||||||
Total expenses | 356,673 | 303,560 | 53,113 | |||||||||
Net income before provision for income taxes | 68,875 | 57,074 | 11,801 | |||||||||
Provision for income taxes | 8,691 | 3,134 | 5,557 | |||||||||
Net income | $ | 60,184 | $ | 53,940 | $ | 6,244 |
Years ended | Increase/ (Decrease) | |||||||||||
2014 | 2013 | |||||||||||
(Dollars in thousands) | ||||||||||||
As restated | As restated | |||||||||||
Operating lease revenue: | ||||||||||||
Operating lease rental revenue | $ | 387,835 | $ | 325,361 | $ | 62,474 | ||||||
End of lease revenue | 41,651 | 39,507 | 2,144 | |||||||||
Amortization of lease incentives | (18,934 | ) | (9,019 | ) | (9,915 | ) | ||||||
Amortization of lease premiums, discounts & other | (3,989 | ) | (4,057 | ) | 68 | |||||||
Total operating lease revenue | $ | 406,563 | $ | 351,792 | $ | 54,771 |
If redeemed during the 12-month period commencing on December 15 of the years set forth below: | Redemption Price | |
2016 | 105.063 % | |
2017 | 103.375 % | |
2018 | 101.688 % | |
2019 and thereafter | 100.000 % |
If redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | Redemption Price | ||||
2017 | 104.781 % | 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 | ||||||||||||||||||||||
Principal payments: | ||||||||||||||||||||||||||||
Principal payment under the 2021 Notes | $ | — | $ | — | $ | — | $ | 325,000 | $ | — | $ | — | $ | 325,000 | ||||||||||||||
Principal payment under the 2024 Notes | — | — | — | — | — | 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 | |||||||||||||||||||||
Principal payments under the Nord LB Facility (2) | 153,176 | — | — | — | — | — | 153,176 | |||||||||||||||||||||
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 Magellan Acquisition Limited Facility | 26,542 | 26,542 | 26,542 | 26,542 | 26,542 | 199,058 | 331,768 | |||||||||||||||||||||
Principal payments under the Fly Acquisition III Facility | 7,182 | 7,182 | 7,182 | 7,182 | 7,182 | 50,610 | 86,520 | |||||||||||||||||||||
Principal payments under Other Aircraft Secured Borrowings | 81,197 | 88,722 | 94,517 | 84,322 | 105,971 | 450,796 | 905,525 | |||||||||||||||||||||
Total principal payments | 309,914 | 169,230 | 187,184 | 477,497 | 174,436 | 1,365,630 | 2,683,891 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Interest payments under secured borrowings (4) | 66,750 | 54,524 | 49,311 | 42,350 | 38,015 | 59,244 | 310,194 | |||||||||||||||||||||
Total interest payments | 103,219 | 90,993 | 85,780 | 74,502 | 53,765 | 87,463 | 495,722 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Total | $ | 433,696 | $ | 280,264 | $ | 291,426 | $ | 569,028 | $ | 243,800 | $ | 1,536,383 | $ | 3,354,597 |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | ||||||||||||||||||||||
Principal payments: | ||||||||||||||||||||||||||||
Principal payment under the 2020 Notes (1) | $ | — | $ | — | $ | — | $ | — | $ | 375,000 | $ | — | $ | 375,000 | ||||||||||||||
Principal payment under the 2021 Notes (2) | — | — | — | — | — | 325,000 | 325,000 | |||||||||||||||||||||
Principal payments under the Securitization Notes (3) | 135,783 | 22,207 | 21,575 | 33,425 | 11,582 | 71,214 | 295,786 | |||||||||||||||||||||
Principal payments under the Nord LB Facility (4) | 24,504 | 25,412 | 205,362 | — | — | — | 255,278 | |||||||||||||||||||||
Principal payments under the CBA Facility (5) | 9,543 | 10,043 | 17,277 | 10,079 | 41,248 | — | 88,190 | |||||||||||||||||||||
Principal payments under the Term Loan (6) | 23,766 | 23,766 | 23,766 | 356,483 | — | — | 427,781 | |||||||||||||||||||||
Principal payments under Other Aircraft Secured Borrowings (7) | 98,392 | 44,522 | 46,574 | 59,135 | 41,102 | 373,344 | 663,069 | |||||||||||||||||||||
Total principal payments | 291,988 | 125,950 | 314,554 | 459,122 | 468,932 | 769,558 | 2,430,104 | |||||||||||||||||||||
Interest payments: | ||||||||||||||||||||||||||||
Interest payments under the 2020 Notes and 2021 Notes (8) | 40,969 | 40,969 | 40,969 | 40,969 | 40,125 | 16,401 | 220,402 | |||||||||||||||||||||
Interest payments under secured borrowings (9) | 48,078 | 43,259 | 38,391 | 26,089 | 12,316 | 35,350 | 203,483 | |||||||||||||||||||||
Total interest payments | 89,047 | 84,228 | 79,360 | 67,058 | 52,441 | 51,751 | 423,885 | |||||||||||||||||||||
Payments to BBAM and its affiliates under our management agreement (10) | 5,722 | 5,722 | 5,722 | 5,722 | 5,722 | 25,752 | 54,362 | |||||||||||||||||||||
Payments to BBAM and its affiliates under our administrative services and servicing agreements (11) | 13,630 | 12,931 | 11,648 | 10,169 | 9,244 | 42,674 | 100,296 | |||||||||||||||||||||
Total | $ | 400,387 | $ | 228,831 | $ | 411,284 | $ | 542,071 | $ | 536,339 | $ | 889,735 | $ | 3,008,647 |
(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. The final maturity of the Securitization Notes is November 14, 2033. |
Amounts reflect estimated principal payments through maturity date of November 14, 2018. |
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. |
(6) | Amounts in the |
Name | Age | Position | ||
Colm Barrington | Chief Executive Officer and Director | |||
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 shareholders; |
● | reviewing the scope of the audit to be conducted by our independent auditors, as well as the results of their audit; |
● | approving audit and non-audit services provided to us by the independent auditors; |
● | reviewing the organization and scope of our internal system of audit, financial and disclosure controls; |
● | overseeing internal controls and risk management; |
● | overseeing our financial reporting activities, including our annual report, and the accounting standards and principles followed; |
● | reviewing and approving related-party transactions and preparing reports for the board of directors on such related-party transactions; |
● | conducting other reviews relating to compliance with applicable laws and our policies, including reviewing at least annually our decision to enter into swaps, and |
● | overseeing our internal audit function. |
Shares Beneficially Owned | Shares Beneficially Owned | |||||||||||||||
Name | Number | Percent | Number | Percent | ||||||||||||
Onex Corporation (1) | 2,443,476 | 7.3% | ||||||||||||||
Seawolf Capital, LLC (2) | 2,351,799 | 5.7% | ||||||||||||||
Donald Smith & Co., Inc. (1) | 2,814,483 | 10.1 | % | |||||||||||||
Onex Corporation (2) | 2,443,476 | 8.7 | % | |||||||||||||
Summit Aviation Partners LLC (3) | 1,743,156 | 5.2% | 1,708,156 | 6.1 | % |
(1) | 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. and Jon Hartsel with the SEC on February 12, 2018. Donald Smith & Co., Inc. has sole voting power over 2,629,749 ADSs and sole dispositive power over 2,814,483 ADSs. Donald Smith Long/Short Equities Fund, L.P. has sole voting power over 8,086 ADSs and sole dispositive power over 2,814,483 ADSs. Jon Hartsel has sole voting power over 3,500 ADSs and sole dispositive power over 2,814,483 ADSs. |
(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., |
(3) | The information above and in this footnote is based on information taken from the Schedule 13D/A filed by Steven Zissis, the Zissis Family Trust and Summit Aviation Partners LLC with the SEC on March 14, |
● | 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 |
● | 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 |
● | 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 |
● | making available individuals (other than members of our |
● | 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 |
● |
● |
● | 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 |
● | internal |
● | 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 |
● | 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 |
● | 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 |
● | 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 |
● | 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 under lease; |
● | implementing aircraft 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, any amendment or modification of any lease, the enforcement of our rights under any lease, disputes that arise as to any aircraft 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, including providing certain reports to lenders and other third parties; and |
● | certain aviation insurance related services. |
● | Bankruptcy or insolvency of BBAM |
● | BBAM LP ceasing to own, directly or indirectly, at least 50% of the |
● | 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 |
Dividend payment date | Dividends paid per share | Total cash outlay | |||||
2015 | |||||||
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 | |||
2014 | |||||||
November 20, 2014 | $ | 0.25 | $ | 10.4 million | |||
August 20, 2014 | $ | 0.25 | $ | 10.4 million | |||
May 20, 2014 | $ | 0.25 | $ | 10.3 million | |||
February 20, 2014 | $ | 0.25 | $ | 10.3 million | |||
2013 | |||||||
November 19, 2013 | $ | 0.22 | $ | 9.1 million | |||
August 20, 2013 | $ | 0.22 | $ | 9.1 million | |||
May 20, 2013 | $ | 0.22 | $ | 6.2 million | |||
February 20, 2013 | $ | 0.22 | $ | 6.2 million |
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 | High | Low | |||||||||||||
2011 | $ | 14.58 | $ | 10.00 | ||||||||||||
2012 | 14.17 | 11.06 | ||||||||||||||
2013 | 17.37 | 12.51 | $ | 17.37 | $ | 12.51 | ||||||||||
2014 | 16.59 | 10.86 | 16.59 | 10.86 | ||||||||||||
2015 | 16.29 | 11.77 | 16.29 | 11.77 | ||||||||||||
2016 | 14.45 | 9.54 | ||||||||||||||
2017 | 14.65 | 11.91 |
High | Low | |||||||
2014 | ||||||||
Quarter ending March 31, 2014 | $ | 16.59 | $ | 14.36 | ||||
Quarter ending June 30, 2014 | 15.08 | 13.15 | ||||||
Quarter ending September 30, 2014 | 15.13 | 12.75 | ||||||
Quarter ending December 31, 2014 | 14.21 | 10.86 | ||||||
2015 | ||||||||
Quarter ending March 31, 2015 | 15.55 | 13.01 | ||||||
Quarter ending June 30, 2015 | 16.29 | 14.48 | ||||||
Quarter ending September 30, 2015 | 16.05 | 11.77 | ||||||
Quarter ending December 31, 2015 | 14.03 | 12.09 |
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 | |||||||
2015 | ||||||||
November 2015 | 13.79 | 12.09 | ||||||
December 2015 | 14.03 | 12.81 | ||||||
2016 | ||||||||
January 2016 | 13.85 | 10.63 | ||||||
February 2016 | 12.87 | 10.70 | ||||||
March 2016 | 13.63 | 12.21 | ||||||
April 2016 | 12.65 | 11.35 |
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 |
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 Amendment dated December 28, 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.” |
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 |
Amended and Restated Term Loan Credit Agreement, dated as of November 21, 2013, among Fly Funding II |
Indenture dated December 11, 2013, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 |
First Supplemental Indenture, dated December 11, 2013, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 |
Second Supplemental Indenture, dated as of October 3, 2014, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 |
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 |
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 |
Amendment to Credit Agreement, dated as of April 22, 2015, among Fly |
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 |
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.” |
● | An |
● | A |
● | A |
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● | 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. |
8% on the aggregate income in excess of €70,044. |
● | an individual resident in a Relevant |
● | 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 |
● | a corporation that is wholly owned by two or more corporations each of whose principal class of shares |
● | otherwise entitled to an exemption from DWT. |
● | Excess distributions by us to a U.S. Holder would be taxed in a special way. |
● | 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 |
Years ended | ||||||||||||||||
2015 | 2014 (1) | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Audit fees | $ | 2,768 | 89 | % | $ | 2,206 | 73 | % | ||||||||
Audit-related fees | — | — | 155 | 5 | % | |||||||||||
Tax fees | 330 | 11 | % | 653 | 22 | % | ||||||||||
All other fees | 3 | — | 3 | — | ||||||||||||
Total | $ | 3,101 | 100 | % | $ | 3,017 | 100 | % |
Years ended | ||||||||||||||||
2017 | 2016 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Audit fees | $ | 1,803 | 73 | % | $ | 1,798 | 90 | % | ||||||||
Tax fees | 304 | 11 | % | 175 | 9 | % | ||||||||||
All other fees | 269 | 16 | % | 20 | 1 | % | ||||||||||
Total | $ | 2,376 | 100 | % | $ | 1,993 | 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) |
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, 2015 | — | — | — | $ | 30.0 million | (1) | ||||||||||
February 1-28, 2015 | — | — | — | $ | 30.0 million | |||||||||||
March 1-31, 2015 | — | — | — | $ | 30.0 million | |||||||||||
April 1-30, 2015 | — | — | — | $ | 30.0 million | |||||||||||
May 1-31, 2015 | — | — | — | $ | 30.0 million | |||||||||||
June 1-30, 2015 | — | — | — | $ | 30.0 million | |||||||||||
July 1-31, 2015 | — | — | — | $ | 30.0 million | |||||||||||
August 1-31, 2015 | — | — | — | $ | 30.0 million | |||||||||||
September 1-30, 2015 | 141,773 | $ | 13.01 | 141,773 | $ | 28.2 million | ||||||||||
October 1-31, 2015 | 121,946 | $ | 13.14 | 121,946 | $ | 26.6 million | ||||||||||
November 1-30, 2015 | 157,610 | $ | 13.11 | 157,610 | $ | 100.0 million | (2) | |||||||||
December 1-31, 2015 | 5,376,344 | $ | 13.95 | 5,376,344 | $ | 25.0 million | (3) |
(1) | In |
Page | |
Report of Independent Registered Public Accounting Firm | F-3 |
Report of Independent Registered Public Accounting Firm | |
Consolidated Balance Sheets of Fly Leasing Limited as of December 31, | |
Consolidated Statements of Income (Loss) of Fly Leasing Limited for the years ended December 31, 2017, 2016 and 2015 | F-5 |
Consolidated Statements of Comprehensive Income (Loss) of Fly Leasing Limited for the years ended December 31, 2017, 2016 and 2015 | F-6 |
Consolidated Statements of Shareholders’ Equity of Fly Leasing Limited for the years ended December 31, 2015, | |
F-7 | |
Consolidated Statements of Cash Flows of Fly Leasing Limited for the years ended December 31, | |
Notes to Consolidated Financial Statements | F-10 |
Schedule I — Condensed Financial Information of Parent |
December 31, | December 31, | |||||||||||||||
2015 | 2014 | 2017 | 2016 | |||||||||||||
As restated | ||||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 275,998 | $ | 337,560 | $ | 329,105 | $ | 517,964 | ||||||||
Restricted cash and cash equivalents | 174,933 | 139,139 | 127,710 | 94,123 | ||||||||||||
Rent receivables | 124 | 4,887 | 2,059 | 419 | ||||||||||||
Investment in unconsolidated subsidiary | 7,170 | 4,002 | 8,196 | 7,700 | ||||||||||||
Investment in direct finance lease, net | 34,878 | — | ||||||||||||||
Flight equipment held for sale, net | 237,262 | — | ||||||||||||||
Investment in finance lease, net | 13,946 | 15,095 | ||||||||||||||
Flight equipment held for operating lease, net | 2,585,426 | 3,556,884 | 2,961,744 | 2,693,821 | ||||||||||||
Maintenance rights, net | 94,493 | 144,920 | 131,299 | 101,969 | ||||||||||||
Deferred tax asset, net | 9,943 | 7,445 | ||||||||||||||
Fair value of derivative assets | 241 | 2,067 | 2,643 | 1,905 | ||||||||||||
Other assets, net | 17,750 | 28,949 | 8,970 | 6,568 | ||||||||||||
Total assets | $ | 3,428,275 | $ | 4,218,408 | $ | 3,595,615 | $ | 3,447,009 | ||||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 17,548 | $ | 18,431 | $ | 18,305 | $ | 13,786 | ||||||||
Rentals received in advance | 14,560 | 19,751 | 14,968 | 13,123 | ||||||||||||
Payable to related parties | 7,170 | 2,772 | 2,084 | 5,042 | ||||||||||||
Security deposits | 48,876 | 64,058 | 49,689 | 42,495 | ||||||||||||
Maintenance payment liability | 194,543 | 254,514 | 244,151 | 182,571 | ||||||||||||
Unsecured borrowings, net | 691,109 | 689,452 | 615,922 | 691,390 | ||||||||||||
Secured borrowings, net | 1,705,311 | 2,332,669 | 2,029,675 | 1,831,985 | ||||||||||||
Deferred tax liability, net | 20,741 | 15,306 | 30,112 | 19,847 | ||||||||||||
Fair value of derivative liabilities | 19,327 | 23,311 | 7,344 | 13,281 | ||||||||||||
Other liabilities | 52,126 | 41,890 | 39,656 | 40,254 | ||||||||||||
Total liabilities | 2,771,311 | 3,462,154 | 3,051,906 | 2,853,774 | ||||||||||||
Shareholders' equity | ||||||||||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 35,671,400 and 41,432,998 shares issued and outstanding at December 31, 2015 and 2014, respectively | 36 | 41 | ||||||||||||||
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 | ||||||||||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | — | — | — | — | ||||||||||||
Additional paid-in capital | 577,290 | 658,522 | 479,637 | 536,922 | ||||||||||||
Retained earnings | 95,138 | 114,782 | 68,624 | 66,026 | ||||||||||||
Accumulated other comprehensive loss, net | (15,500 | ) | (17,091 | ) | (4,580 | ) | (9,745 | ) | ||||||||
Total shareholders' equity | 656,964 | 756,254 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 3,428,275 | $ | 4,218,408 | ||||||||||||
Total shareholders’ equity | 543,709 | 593,235 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,595,615 | $ | 3,447,009 |
Years ended | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Revenues | ||||||||||||
Operating lease revenue | $ | 346,894 | $ | 313,582 | $ | 429,691 | ||||||
Finance lease revenue | 731 | 2,066 | 299 | |||||||||
Equity earnings from unconsolidated subsidiary | 496 | 530 | 1,159 | |||||||||
Gain on sale of aircraft | 3,926 | 27,195 | 28,959 | |||||||||
Interest and other income | 1,204 | 1,666 | 2,289 | |||||||||
Total revenues | 353,251 | 345,039 | 462,397 | |||||||||
Expenses | ||||||||||||
Depreciation | 133,227 | 120,452 | 159,732 | |||||||||
Aircraft impairment | 22,000 | 96,122 | 66,093 | |||||||||
Interest expense | 127,782 | 123,161 | 145,448 | |||||||||
Selling, general and administrative | 30,671 | 30,077 | 33,674 | |||||||||
Ineffective, dedesignated and terminated derivatives | (192 | ) | 91 | 4,134 | ||||||||
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 17,491 | |||||||||
Maintenance and other costs | 2,524 | 2,279 | 7,628 | |||||||||
Total expenses | 339,321 | 381,428 | 434,200 | |||||||||
Net income (loss) before provision (benefit) for income taxes | 13,930 | (36,389 | ) | 28,197 | ||||||||
Provision (benefit) for income taxes | 11,332 | (7,277 | ) | 5,399 | ||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | |||||
Weighted average number of shares: | ||||||||||||
Basic | 30,307,357 | 33,239,001 | 41,222,690 | |||||||||
Diluted | 30,353,425 | 33,239,001 | 41,315,149 | |||||||||
Earnings (loss) per share: | ||||||||||||
Basic | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | |||||
Diluted | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | |||||
Dividends declared and paid per share | $ | — | $ | — | $ | 1.00 |
Years ended | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | |||||
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 | |||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax (2) | — | (10 | ) | (130 | ) | |||||||
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 | |||||||||
Comprehensive income (loss) | $ | 7,763 | $ | (23,357 | ) | $ | 24,389 |
Years ended | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
Revenues | As restated | As restated | ||||||||||
Operating lease revenue | $ | 429,691 | $ | 406,563 | $ | 351,792 | ||||||
Finance lease income | 299 | — | — | |||||||||
Equity earnings from unconsolidated subsidiary | 1,159 | 3,562 | 1,491 | |||||||||
Gain on sale of aircraft | 28,959 | 14,761 | 5,421 | |||||||||
Interest and other income | 2,289 | 662 | 1,930 | |||||||||
Total revenues | 462,397 | 425,548 | 360,634 | |||||||||
Expenses | ||||||||||||
Depreciation | 159,732 | 166,983 | 138,336 | |||||||||
Aircraft impairment | 66,093 | 1,200 | 6,166 | |||||||||
Interest expense | 145,448 | 142,519 | 120,399 | |||||||||
Selling, general and administrative | 33,674 | 41,033 | 39,593 | |||||||||
Ineffective, dedesignated and terminated derivatives | 4,134 | 72 | (1,263 | ) | ||||||||
Net (gain) loss on extinguishment of debt | 17,491 | (2,194 | ) | (15,147 | ) | |||||||
Maintenance and other costs | 7,628 | 7,060 | 15,476 | |||||||||
Total expenses | 434,200 | 356,673 | 303,560 | |||||||||
Net income before provision for income taxes | 28,197 | 68,875 | 57,074 | |||||||||
Provision for income taxes | 5,399 | 8,691 | 3,134 | |||||||||
Net income | $ | 22,798 | $ | 60,184 | $ | 53,940 | ||||||
Weighted average number of shares: | ||||||||||||
Basic | 41,222,690 | 41,405,211 | 34,129,880 | |||||||||
Diluted | 41,315,149 | 41,527,584 | 34,243,456 | |||||||||
Earnings per share: | ||||||||||||
Basic | $ | 0.52 | $ | 1.42 | $ | 1.55 | ||||||
Diluted | $ | 0.52 | $ | 1.42 | $ | 1.55 | ||||||
Dividends declared and paid per share | $ | 1.00 | $ | 1.00 | $ | 0.88 |
(1) | The associated deferred tax expense was $0.6 million, $0.7 million and $0.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
(2) | The associated deferred tax benefit was $1,000 and $19,000 for the years ended December 31, 2016 and 2015, respectively. |
(3) | The associated deferred tax expense was $0.2 million, $0.1 million and $0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Years ended | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
As restated | As restated | |||||||||||
Net income | $ | 22,798 | $ | 60,184 | $ | 53,940 | ||||||
Other components of comprehensive income, net of tax: Change in fair value of derivatives, net of deferred tax (1) | 158 | (3,238 | ) | 22,093 | ||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax (2) | (130 | ) | — | (1,302 | ) | |||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax (3) | 1,563 | — | — | |||||||||
Comprehensive income | $ | 24,389 | $ | 56,946 | $ | 74,731 |
Manager Shares | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss, net | Total Shareholders’ Equity | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
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 | |||||||||||||||||
Shares repurchased | — | — | (3,414,960 | ) | (4 | ) | (40,368 | ) | — | — | (40,372 | ) | ||||||||||||||||||||
Net loss | — | — | — | — | — | (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 | ||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax of $1,000 (1) | — | — | — | — | — | — | (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 | ||||||||||||||||||||||||
Balance December 31, 2016 | 100 | $ | — | 32,256,440 | $ | 32 | $ | 536,922 | $ | 66,026 | $ | (9,745 | ) | $ | 593,235 | |||||||||||||||||
Shares issued in connection with SARs exercised | — | — | 1,481 | — | — | — | — | — | ||||||||||||||||||||||||
Shares repurchased | — | — | (4,274,569 | ) | (4 | ) | (57,285 | ) | — | — | (57,289 | ) | ||||||||||||||||||||
Net income | — | — | — | — | — | 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 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Balance December 31, 2017 | 100 | $ | — | 27,983,352 | $ | 28 | $ | 479,637 | $ | 68,624 | $ | (4,580 | ) | $ | 543,709 |
(1) |
Manager Shares | Common Shares | Additional Paid-in Capital | Retained Earnings (Deficit) | Other Comprehensive Loss, net | Total Shareholders' Equity | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Balance December 31, 2012 as previously reported | 100 | $ | — | 28,040,305 | $ | 28 | $ | 482,733 | $ | 83,138 | $ | (33,897 | ) | $ | 532,002 | |||||||||||||||||
Adjustment to ending balance | — | — | — | — | — | (8,191 | ) | — | (8,191 | ) | ||||||||||||||||||||||
Balance December 31, 2012 as restated | 100 | - | 28,040,305 | 28 | 482,733 | 74,947 | (33,897 | ) | 523,811 | |||||||||||||||||||||||
Dividends to shareholders | — | — | — | — | — | (30,531 | ) | — | (30,531 | ) | ||||||||||||||||||||||
Dividend equivalents | — | — | — | — | — | (940 | ) | — | (940 | ) | ||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses | — | — | 13,142,856 | 13 | 172,582 | — | — | 172,595 | ||||||||||||||||||||||||
Shares issued in connection with vested share grants | — | — | 122,534 | — | — | — | — | — | ||||||||||||||||||||||||
Shares issued in connection with SARs exercised | — | — | 643 | — | — | — | — | — | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 3,177 | — | — | 3,177 | ||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset of $0.3 million (1) | — | — | — | — | — | — | (747 | ) | (747 | ) | ||||||||||||||||||||||
Net income as restated | — | — | — | — | — | 53,940 | — | 53,940 | ||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax liability of $3.5 million (1) | — | — | — | — | — | — | 22,093 | 22,093 | ||||||||||||||||||||||||
Reclassified from other comprehensive income into earnings, net of deferred tax asset of $0.2 million (1) | — | — | — | — | — | — | (1,302 | ) | (1,302 | ) | ||||||||||||||||||||||
Balance December 31, 2013 as restated | 100 | $ | — | 41,306,338 | $ | 41 | $ | 658,492 | $ | 97,416 | $ | (13,853 | ) | $ | 742,096 | |||||||||||||||||
Dividends to shareholders | — | — | — | — | — | (41,392 | ) | — | (41,392 | ) | ||||||||||||||||||||||
Dividend equivalents | — | — | — | — | — | (1,426 | ) | (1,426 | ) | |||||||||||||||||||||||
Shares issued in connection with vested share grants | — | — | 119,666 | — | — | — | — | — | ||||||||||||||||||||||||
Shares issued in connection with SARs exercised | — | — | 6,994 | — | — | — | — | — | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 30 | — | — | 30 | ||||||||||||||||||||||||
Net income as restated | — | — | — | — | — | 60,184 | — | 60,184 | ||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset of $0.6 million (1) | — | — | — | — | — | — | (3,238 | ) | (3,238 | ) | ||||||||||||||||||||||
Balance December 31, 2014 as restated | 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 liability of $0.3 million (1) | — | — | — | — | — | — | 158 | 158 | ||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax asset 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 liability 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 |
Years ended | ||||||||||||
2015 | 2014 | 2013 | ||||||||||
As restated | As restated | |||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net Income | $ | 22,798 | $ | 60,184 | $ | 53,940 | ||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||
Equity earnings from unconsolidated subsidiary | (1,159 | ) | (3,562 | ) | (1,491 | ) | ||||||
Direct finance lease income | (299 | ) | — | — | ||||||||
Gain on sale of aircraft | (28,959 | ) | (14,761 | ) | (5,421 | ) | ||||||
Depreciation | 159,732 | 166,983 | 138,336 | |||||||||
Aircraft impairment | 66,093 | 1,200 | 6,166 | |||||||||
Amortization of debt discounts and debt issuance costs | 11,922 | 12,516 | 11,680 | |||||||||
Amortization of lease incentives | 20,527 | 18,934 | 9,019 | |||||||||
Amortization of lease discounts/premiums and other items | 2,046 | 2,841 | 2,228 | |||||||||
Amortization of GAAM acquisition date fair value adjustments | 3,650 | 6,260 | 12,602 | |||||||||
Net loss (gain) on debt modification and extinguishment | 13,868 | (2,247 | ) | (15,881 | ) | |||||||
Share-based compensation | 195 | 30 | 3,177 | |||||||||
Unrealized foreign exchange gain | (1,247 | ) | — | — | ||||||||
Provision for deferred income taxes | 4,919 | 5,733 | 4,534 | |||||||||
Unrealized loss (gain) on derivative instruments | 4,134 | 38 | (1,263 | ) | ||||||||
Security deposits and maintenance payment liability recognized into earnings | (48,658 | ) | (32,271 | ) | (23,298 | ) | ||||||
Security deposits and maintenance payment claims applied towards operating lease revenues | — | — | (2,596 | ) | ||||||||
Distributions from unconsolidated subsidiary | — | 5,501 | — | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Rent receivables | 6,814 | (4,767 | ) | (4,982 | ) | |||||||
Other assets | 137 | (1,589 | ) | (1,969 | ) | |||||||
Payable to related parties | (19,407 | ) | (12,848 | ) | (7,613 | ) | ||||||
Accounts payable, accrued liabilities and other liabilities | (2,183 | ) | 18,990 | 4,306 | ||||||||
Net cash flows provided by operating activities | 214,923 | 227,165 | 181,474 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Distributions from (investment in) unconsolidated subsidiary | (2,009 | ) | 1,132 | — | ||||||||
Rent received from direct finance lease | 424 | — | — | |||||||||
Investment in direct finance lease | (33,596 | ) | — | — | ||||||||
Purchase of flight equipment | (567,523 | ) | (915,450 | ) | (632,944 | ) | ||||||
Proceeds from sale of aircraft, net | 1,110,046 | 88,617 | 48,539 | |||||||||
Payments for aircraft improvement | (8,196 | ) | (9,841 | ) | — | |||||||
Payments for maintenance | (18,609 | ) | (5,017 | ) | (24,185 | ) | ||||||
Net cash flows provided by (used in) investing activities | 480,537 | (840,559 | ) | (608,590 | ) | |||||||
Cash Flows from Financing Activities | ||||||||||||
Restricted cash and cash equivalents | (35,794 | ) | 35,690 | (39,731 | ) | |||||||
Security deposits received | 13,914 | 18,134 | 13,910 | |||||||||
Security deposits returned | (7,788 | ) | (4,728 | ) | (7,271 | ) | ||||||
Maintenance payment liability receipts | 84,491 | 85,172 | 56,968 | |||||||||
Maintenance payment liability disbursements | (38,768 | ) | (45,412 | ) | (16,612 | ) | ||||||
Net swap termination payments | (3,737 | ) | — | — | ||||||||
Debt extinguishment costs | — | — | (3,856 | ) | ||||||||
Debt issuance costs | (933 | ) | (1,803 | ) | (11,825 | ) | ||||||
Proceeds from unsecured borrowings | — | 396,563 | 291,389 | |||||||||
Proceeds from secured borrowings | 147,276 | 298,658 | 688,975 | |||||||||
Repayment of secured borrowings | (791,385 | ) | (192,974 | ) | (444,607 | ) | ||||||
Proceeds from issuance of shares, net of fees paid | — | — | 172,595 | |||||||||
Shares repurchased | (81,432 | ) | — | — | ||||||||
Dividends paid | (41,388 | ) | (41,392 | ) | (30,531 | ) | ||||||
Dividend equivalents | (1,054 | ) | (1,426 | ) | (940 | ) | ||||||
Net cash flows (used in) provided by financing activities | (756,598 | ) | 546,482 | 668,464 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (424 | ) | — | — | ||||||||
Net increase (decrease) in cash and cash equivalents | (61,562 | ) | (66,912 | ) | 241,348 | |||||||
Cash and cash equivalents at beginning of year | 337,560 | 404,472 | 163,124 | |||||||||
Cash and cash equivalents at end of year | $ | 275,998 | $ | 337,560 | $ | 404,472 | ||||||
Supplemental Disclosure: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 132,780 | $ | 119,745 | $ | 97,481 | ||||||
Taxes | 384 | 188 | 84 | |||||||||
Noncash Activities: | ||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 3,292 | 1,938 | 1,414 | |||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance | 2,523 | — | 4,446 | |||||||||
Other liabilities applied to maintenance payment liability and rent receivables | 240 | 979 | — | |||||||||
Noncash investing activities: | ||||||||||||
Aircraft improvement | 1,587 | 2,882 | 2,334 | |||||||||
Noncash activities in connection with purchase of aircraft | 19,382 | 26,002 | 1,774 | |||||||||
Noncash activities in connection with sale of aircraft | 93,819 | 12,479 | 43,500 |
Years ended | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | |||||
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 | ) | ||||||
Gain on sale of aircraft | (3,926 | ) | (27,195 | ) | (28,959 | ) | ||||||
Depreciation | 133,227 | 120,452 | 159,732 | |||||||||
Aircraft impairment | 22,000 | 96,122 | 66,093 | |||||||||
Amortization of debt discounts and debt issuance costs | 7,955 | 9,375 | 11,922 | |||||||||
Amortization of lease incentives | 7,668 | 8,898 | 20,527 | |||||||||
Amortization of lease premiums, discounts and other | 412 | 388 | 2,046 | |||||||||
Amortization of GAAM acquisition fair value adjustments | 1,223 | 1,621 | 3,650 | |||||||||
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 17,491 | |||||||||
Share-based compensation | — | — | 195 | |||||||||
Unrealized foreign exchange (gain) loss | 2,305 | (437 | ) | (1,247 | ) | |||||||
Provision (benefit) for deferred income taxes | 5,178 | (9,158 | ) | 4,919 | ||||||||
(Gain) loss on derivative instruments | (478 | ) | 76 | 4,134 | ||||||||
Security deposits and maintenance payment liability recognized into earnings | (16,268 | ) | (3,450 | ) | (48,658 | ) | ||||||
Security deposits and maintenance payment claims applied towards operating lease revenue | — | (684 | ) | — | ||||||||
Cash receipts from maintenance rights | — | 9,513 | — | |||||||||
Maintenance rights recognized into earnings | 465 | — | — | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Rent receivables | (4,251 | ) | (1,034 | ) | 6,814 | |||||||
Other assets | (2,599 | ) | (1,134 | ) | 137 | |||||||
Payable to related parties | (10,126 | ) | (17,163 | ) | (19,407 | ) | ||||||
Accounts payable, accrued liabilities and other liabilities | 11,588 | (10,964 | ) | (2,183 | ) | |||||||
Net cash flows provided by operating activities | 179,053 | 152,764 | 218,546 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Investment in unconsolidated subsidiary | — | — | (2,009 | ) | ||||||||
Rent received from finance lease | 1,880 | 2,970 | 424 | |||||||||
Investment in finance lease | — | — | (33,596 | ) | ||||||||
Purchase of flight equipment | (434,122 | ) | (552,166 | ) | (567,523 | ) | ||||||
Proceeds from sale of aircraft, net | 21,750 | 430,867 | 1,110,046 | |||||||||
Payments for aircraft improvement | (7,357 | ) | (2,230 | ) | (8,196 | ) | ||||||
Payments for lessor maintenance obligations | (12,564 | ) | (2,712 | ) | (18,609 | ) | ||||||
Net cash flows (used in) provided by investing activities | (430,413 | ) | (123,271 | ) | 480,537 |
Cash Flows from Financing Activities | ||||||||||||
Security deposits received | 7,196 | 920 | 13,914 | |||||||||
Security deposits returned | (3,554 | ) | (7,438 | ) | (7,788 | ) | ||||||
Maintenance payment liability receipts | 75,765 | 71,514 | 84,491 | |||||||||
Maintenance payment liability disbursements | (14,303 | ) | (10,951 | ) | (38,768 | ) | ||||||
Net swap termination payments | — | (709 | ) | (3,737 | ) | |||||||
Debt modification and extinguishment costs | (17,396 | ) | (3,153 | ) | (3,623 | ) | ||||||
Debt issuance costs | (1,464 | ) | (2,552 | ) | (933 | ) | ||||||
Proceeds from unsecured borrowings | 295,150 | — | — | |||||||||
Repayment of unsecured borrowings | (375,000 | ) | — | — | ||||||||
Proceeds from secured borrowings | 513,459 | 572,719 | 147,276 | |||||||||
Repayment of secured borrowings | (326,909 | ) | (448,346 | ) | (791,385 | ) | ||||||
Shares repurchased | (57,286 | ) | (40,257 | ) | (81,432 | ) | ||||||
Dividends paid | — | — | (41,388 | ) | ||||||||
Dividend equivalents | — | — | (1,054 | ) | ||||||||
Net cash flows provided by (used in) financing activities | 95,658 | 131,747 | (724,427 | ) | ||||||||
Effect of exchange rate changes on unrestricted and restricted cash and cash equivalents | 430 | (84 | ) | (424 | ) | |||||||
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | (155,272 | ) | 161,156 | (25,768 | ) | |||||||
Unrestricted and restricted cash and cash equivalents at beginning of period | 612,087 | 450,931 | 476,699 | |||||||||
Unrestricted and restricted cash and cash equivalents at end of period | $ | 456,815 | $ | 612,087 | $ | 450,931 | ||||||
Reconciliation to Consolidated Balance Sheets: | ||||||||||||
Cash and cash equivalents | $ | 329,105 | $ | 517,964 | $ | 275,998 | ||||||
Restricted cash and cash equivalents | 127,710 | 94,123 | 174,933 | |||||||||
Unrestricted and restricted cash and cash equivalents | $ | 456,815 | $ | 612,087 | $ | 450,931 |
1. | ORGANIZATION |
2. |
Retained earnings at January 1, 2013 – As previously reported | $ | 83,138 | ||
Adjustments | (8,191 | ) | ||
Retained earnings at January 1, 2013 – As restated | $ | 74,947 |
For the Years Ended December 31, | ||||||||
2014 | 2013 | |||||||
Net income – As previously reported | $ | 56,077 | $ | 52,476 | ||||
Adjustments | 4,107 | 1,464 | ||||||
Net income – As restated | $ | 60,184 | $ | 53,940 |
December 31, 2014 | ||||||||||||||||
As previously reported | Maintenance rights adjustments | Other adjustments | As restated | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 337,560 | $ | — | $ | — | $ | 337,560 | ||||||||
Restricted cash and cash equivalents | 139,139 | — | — | 139,139 | ||||||||||||
Rent receivables | 4,887 | — | — | 4,887 | ||||||||||||
Investment in unconsolidated subsidiary | 4,002 | — | — | 4,002 | ||||||||||||
Investment in direct finance lease, net | — | — | — | — | ||||||||||||
Flight equipment held for sale, net | — | — | — | — | ||||||||||||
Flight equipment held for operating lease, net | 3,705,407 | (143,336 | ) | (5,187 | ) | 3,556,884 | ||||||||||
Maintenance rights, net | — | 144,920 | — | 144,920 | ||||||||||||
Fair value of derivative assets | 2,067 | — | — | 2,067 | ||||||||||||
Other assets, net | 31,608 | — | (2,659 | ) | 28,949 | |||||||||||
Total assets | $ | 4,224,670 | $ | 1,584 | $ | (7,846 | ) | $ | 4,218,408 | |||||||
Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 18,431 | $ | — | $ | — | $ | 18,431 | ||||||||
Rentals received in advance | 19,751 | — | — | 19,751 | ||||||||||||
Payable to related parties | 2,772 | — | — | 2,772 | ||||||||||||
Security deposits | 64,058 | — | — | 64,058 | ||||||||||||
Maintenance payment liability | 254,514 | — | — | 254,514 | ||||||||||||
Unsecured borrowings, net | 689,452 | — | — | 689,452 | ||||||||||||
Secured borrowings, net | 2,335,328 | — | (2,659 | ) | 2,332,669 | |||||||||||
Deferred tax liability, net | 16,289 | 294 | (1,277 | ) | 15,306 | |||||||||||
Fair value of derivative liabilities | 23,311 | — | — | 23,311 | ||||||||||||
Other liabilities | 41,890 | — | — | 41,890 | ||||||||||||
Total liabilities | 3,465,796 | 294 | (3,936 | ) | 3,462,154 | |||||||||||
Shareholders' equity | ||||||||||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 41,432,998 shares issued and outstanding at December 31, 2014 | 41 | — | — | 41 | ||||||||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | — | — | — | — | ||||||||||||
Additional paid-in capital | 658,522 | — | — | 658,522 | ||||||||||||
Retained earnings | 117,402 | 1,290 | (3,910 | ) | 114,782 | |||||||||||
Accumulated other comprehensive loss, net | (17,091 | ) | — | — | (17,091 | ) | ||||||||||
Total shareholders' equity | 758,874 | 1,290 | (3,910 | ) | 756,254 | |||||||||||
Total liabilities and shareholders' equity | $ | 4,224,670 | $ | 1,584 | $ | (7,846 | ) | $ | 4,218,408 |
Year Ended December 31, 2014 | ||||||||||||||||
As previously reported | Maintenance rights adjustments | Other adjustments | As restated | |||||||||||||
Revenues | ||||||||||||||||
Operating lease revenue | $ | 404,668 | $ | 1,895 | $ | — | $ | 406,563 | ||||||||
Finance lease income | — | — | — | — | ||||||||||||
Equity earnings from unconsolidated subsidiary | 2,456 | — | 1,106 | 3,562 | ||||||||||||
Gain on sale of aircraft | 18,878 | (4,564 | ) | 447 | 14,761 | |||||||||||
Interest and other income | 662 | — | — | 662 | ||||||||||||
Total revenues | 426,664 | (2,669 | ) | 1,553 | 425,548 | |||||||||||
Expenses | ||||||||||||||||
Depreciation | 175,547 | (8,290 | ) | (274 | ) | 166,983 | ||||||||||
Aircraft impairment | — | — | 1,200 | 1,200 | ||||||||||||
Interest expense | 142,519 | — | — | 142,519 | ||||||||||||
Selling, general and administrative | 41,148 | — | (115 | ) | 41,033 | |||||||||||
Ineffective, dedesignated and terminated derivatives | 72 | — | — | 72 | ||||||||||||
Net (gain) loss on extinguishment of debt | (3,922 | ) | 1,713 | 15 | (2,194 | ) | ||||||||||
Maintenance and other costs | 6,960 | — | 100 | 7,060 | ||||||||||||
Total expenses | 362,324 | (6,577 | ) | 926 | 356,673 | |||||||||||
Net income before provision for income taxes | 64,340 | 3,908 | 627 | 68,875 | ||||||||||||
Provision for income taxes | 8,263 | 751 | (323 | ) | 8,691 | |||||||||||
Net income | $ | 56,077 | $ | 3,157 | $ | 950 | $ | 60,184 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.32 | $ | 1.42 | ||||||||||||
Diluted | $ | 1.32 | $ | 1.42 |
Year Ended December 31, 2013 | ||||||||||||||||
As previously reported | Maintenance rights adjustments | Other adjustments | As restated | |||||||||||||
Revenues | ||||||||||||||||
Operating lease revenue | $ | 359,409 | $ | (8,062 | ) | 445 | $ | 351,792 | ||||||||
Finance lease income | — | — | — | — | ||||||||||||
Equity earnings from unconsolidated subsidiary | 1,871 | — | (380 | ) | 1,491 | |||||||||||
Gain on sale of aircraft | 6,277 | (856 | ) | — | 5,421 | |||||||||||
Interest and other income | 1,930 | — | — | 1,930 | ||||||||||||
Total revenues | 369,487 | (8,918 | ) | 65 | 360,634 | |||||||||||
Expenses | ||||||||||||||||
Depreciation | 146,400 | (7,854 | ) | (210 | ) | 138,336 | ||||||||||
Aircraft impairment | 8,825 | (2,659 | ) | — | 6,166 | |||||||||||
Interest expense | 120,399 | — | — | 120,399 | ||||||||||||
Selling, general and administrative | 37,418 | — | 2,175 | 39,593 | ||||||||||||
Ineffective, dedesignated and terminated derivatives | (1,263 | ) | — | — | (1,263 | ) | ||||||||||
Net gain on extinguishment of debt | (15,881 | ) | — | 734 | (15,147 | ) | ||||||||||
Maintenance and other costs | 15,454 | — | 22 | 15,476 | ||||||||||||
Total expenses | 311,352 | (10,513 | ) | 2,721 | 303,560 | |||||||||||
Net income before provision for income taxes | 58,135 | 1,595 | (2,656 | ) | 57,074 | |||||||||||
Provision for income taxes | 5,659 | 118 | (2,643 | ) | 3,134 | |||||||||||
Net income | $ | 52,476 | $ | 1,477 | (13 | ) | $ | 53,940 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.51 | $ | 1.55 | ||||||||||||
Diluted | $ | 1.50 | $ | 1.55 |
Manager Shares | Common Shares | Additional Paid-in Capital | Retained Earnings (Deficit) | Other Comprehensive Loss, net | Total Shareholders' Equity | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Balance December 31, 2012 as previously reported | 100 | $ | — | 28,040,305 | $ | 28 | $ | 482,733 | $ | 83,138 | $ | (33,897 | ) | $ | 532,002 | |||||||||||||||||
Adjustment to ending balance | — | — | — | — | — | (8,191 | ) | — | (8,191 | ) | ||||||||||||||||||||||
Balance December 31, 2012 as restated | 100 | — | 28,040,305 | 28 | 482,733 | 74,947 | (33,897 | ) | 523,811 | |||||||||||||||||||||||
Dividends to shareholders | — | — | — | — | — | (30,531 | ) | — | (30,531 | ) | ||||||||||||||||||||||
Dividend equivalents | — | — | — | — | — | (940 | ) | — | (940 | ) | ||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses | — | — | 13,142,856 | 13 | 172,582 | — | — | 172,595 | ||||||||||||||||||||||||
Shares issued in connection with vested share grants | — | — | 122,534 | — | — | — | — | — | ||||||||||||||||||||||||
Shares issued in connection with SARs exercised | — | — | 643 | — | — | — | — | — | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 3,177 | — | — | 3,177 | ||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset of $0.3 million (1) | — | — | — | — | — | — | (747 | ) | (747 | ) | ||||||||||||||||||||||
Net income as restated | — | — | — | — | — | 53,940 | — | 53,940 | ||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax liability of $3.5 million (1) | — | — | — | — | — | — | 22,093 | 22,093 | ||||||||||||||||||||||||
Reclassified from other comprehensive income into earnings, net of deferred tax asset of $0.2 million (1) | — | — | — | — | — | — | (1,302 | ) | (1,302 | ) | ||||||||||||||||||||||
Balance December 31, 2013 as restated | 100 | $ | — | 41,306,338 | $ | 41 | $ | 658,492 | $ | 97,416 | $ | (13,853 | ) | $ | 742,096 | |||||||||||||||||
Dividends to shareholders | — | — | — | — | — | (41,392 | ) | — | (41,392 | ) | ||||||||||||||||||||||
Dividend equivalents | — | — | — | — | — | (1,426 | ) | (1,426 | ) | |||||||||||||||||||||||
Shares issued in connection with vested share grants | — | — | 119,666 | — | — | — | — | — | ||||||||||||||||||||||||
Shares issued in connection with SARs exercised | — | — | 6,994 | — | — | — | — | — | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 30 | — | — | 30 | ||||||||||||||||||||||||
Net income as restated | — | — | — | — | — | 60,184 | — | 60,184 | ||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset of $0.6 million (1) | — | — | — | — | — | — | (3,238 | ) | (3,238 | ) | ||||||||||||||||||||||
Balance December 31, 2014 as restated | 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 liability of $0.3 million (1) | — | — | — | — | — | — | 158 | 158 | ||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax asset 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 liability 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 |
Year Ended December 31, 2014 | ||||||||||||
As previously reported | Adjustments | As restated | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net Income | $ | 56,077 | $ | 4,107 | $ | 60,184 | ||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||
Equity earnings from unconsolidated subsidiary | (2,456 | ) | (1,106 | ) | (3,562 | ) | ||||||
Direct finance lease income | — | — | — | |||||||||
Gain on sale of aircraft | (18,878 | ) | 4,117 | (14,761 | ) | |||||||
Depreciation | 175,547 | (8,564 | ) | 166,983 | ||||||||
Aircraft impairment | — | 1,200 | 1,200 | |||||||||
Amortization of debt discounts and debt issuance costs | 5,380 | 7,136 | 12,516 | |||||||||
Amortization of lease incentives | 18,934 | — | 18,934 | |||||||||
Amortization of lease discounts/premiums and other items | 9,977 | (7,136 | ) | 2,841 | ||||||||
Amortization of GAAM acquisition date fair value adjustments | 6,260 | — | 6,260 | |||||||||
Net loss (gain) on debt modification and extinguishment | (3,960 | ) | 1,713 | (2,247 | ) | |||||||
Share-based compensation | 30 | — | 30 | |||||||||
Unrealized foreign exchange gain | — | — | — | |||||||||
Provision for deferred income taxes | 6,169 | (436 | ) | 5,733 | ||||||||
Unrealized loss on derivative instruments | 38 | — | 38 | |||||||||
Security deposits and maintenance payment liability recognized into earnings | (30,376 | ) | (1,895 | ) | (32,271 | ) | ||||||
Security deposits and maintenance payment claims applied towards operating lease revenues | — | — | — | |||||||||
Distributions from unconsolidated subsidiary | 5,501 | — | 5,501 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Rent receivables | (4,767 | ) | — | (4,767 | ) | |||||||
Other assets | (1,589 | ) | — | (1,589 | ) | |||||||
Payable to related parties | (12,848 | ) | — | (12,848 | ) | |||||||
Accounts payable, accrued liabilities and other liabilities | 18,126 | 864 | 18,990 | |||||||||
Net cash flows provided by operating activities | 227,165 | — | 227,165 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Distributions from (investment in) unconsolidated subsidiary | 1,132 | — | 1,132 | |||||||||
Rent received from direct finance lease | — | — | — | |||||||||
Investment in direct finance lease | — | — | — | |||||||||
Purchase of flight equipment | (915,450 | ) | — | (915,450 | ) | |||||||
Proceeds from sale of aircraft, net | 88,617 | — | 88,617 | |||||||||
Payments for aircraft improvement | (9,841 | ) | — | (9,841 | ) | |||||||
Payments for maintenance | (5,017 | ) | — | (5,017 | ) | |||||||
Net cash flows used in investing activities | (840,559 | ) | — | (840,559 | ) | |||||||
Cash Flows from Financing Activities | ||||||||||||
Restricted cash and cash equivalents | 35,690 | — | 35,690 | |||||||||
Security deposits received | 18,134 | — | 18,134 | |||||||||
Security deposits returned | (4,728 | ) | — | (4,728 | ) | |||||||
Maintenance payment liability receipts | 85,172 | — | 85,172 | |||||||||
Maintenance payment liability disbursements | (45,412 | ) | — | (45,412 | ) | |||||||
Net swap termination payments | — | — | — | |||||||||
Debt extinguishment costs | — | — | — | |||||||||
Debt issuance costs | (1,803 | ) | — | (1,803 | ) | |||||||
Proceeds from unsecured borrowings | 396,563 | — | 396,563 | |||||||||
Proceeds from secured borrowings | 298,658 | — | 298,658 | |||||||||
Repayment of secured borrowings | (192,974 | ) | — | (192,974 | ) | |||||||
Proceeds from issuance of shares, net of fees paid | — | — | — | |||||||||
Shares repurchased | — | — | — | |||||||||
Dividends paid | (41,392 | ) | — | (41,392 | ) | |||||||
Dividend equivalents | (1,426 | ) | — | (1,426 | ) | |||||||
Net cash flows provided by financing activities | 546,482 | — | 546,482 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | |||||||||
Net decrease in cash and cash equivalents | (66,912 | ) | — | (66,912 | ) | |||||||
Cash and cash equivalents at beginning of year | 404,472 | — | 404,472 | |||||||||
Cash and cash equivalents at end of year | $ | 337,560 | $ | — | $ | 337,560 | ||||||
Supplemental Disclosure: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 119,745 | $ | — | $ | 119,745 | ||||||
Taxes | 188 | — | 188 | |||||||||
Noncash Activities: | ||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 1,938 | — | 1,938 | |||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance | — | — | — | |||||||||
Other liabilities applied to maintenance payment liability and rent receivables | 979 | — | 979 | |||||||||
Noncash investing activities: | ||||||||||||
Aircraft improvement | 2,882 | — | 2,882 | |||||||||
Noncash activities in connection with purchase of aircraft | 26,002 | — | 26,002 | |||||||||
Noncash activities in connection with sale of aircraft | 12,479 | — | 12,479 |
Year Ended December 31, 2013 | ||||||||||||
As previously reported | Adjustments | As restated | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net Income | $ | 52,476 | $ | 1,464 | $ | 53,940 | ||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||
Equity earnings from unconsolidated subsidiary | (1,871 | ) | 380 | (1,491 | ) | |||||||
Direct finance lease income | — | — | — | |||||||||
Gain on sale of aircraft | (6,277 | ) | 856 | (5,421 | ) | |||||||
Depreciation | 146,400 | (8,064 | ) | 138,336 | ||||||||
Aircraft impairment | 8,825 | (2,659 | ) | 6,166 | ||||||||
Amortization of debt discounts and debt issuance costs | 5,735 | 5,945 | 11,680 | |||||||||
Amortization of lease incentives | 9,019 | — | 9,019 | |||||||||
Amortization of lease discounts/premiums and other items | 8,173 | (5,945 | ) | 2,228 | ||||||||
Amortization of GAAM acquisition date fair value adjustments | 12,602 | — | 12,602 | |||||||||
Net gain on debt modification and extinguishment | (15,881 | ) | — | (15,881 | ) | |||||||
Share-based compensation | 3,177 | — | 3,177 | |||||||||
Unrealized foreign exchange gain | — | — | — | |||||||||
Provision for deferred income taxes | 6,195 | (1,661 | ) | 4,534 | ||||||||
Unrealized gain on derivative instruments | (1,263 | ) | — | (1,263 | ) | |||||||
Security deposits and maintenance payment liability recognized into earnings | (31,360 | ) | 8,062 | (23,298 | ) | |||||||
Security deposits and maintenance payment claims applied towards operating lease revenues | (2,596 | ) | — | (2,596 | ) | |||||||
Distributions from unconsolidated subsidiary | — | — | — | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Rent receivables | (4,982 | ) | — | (4,982 | ) | |||||||
Other assets | (1,969 | ) | — | (1,969 | ) | |||||||
Payable to related parties | (10,544 | ) | 2,931 | (7,613 | ) | |||||||
Accounts payable, accrued liabilities and other liabilities | 5,615 | (1,309 | ) | 4,306 | ||||||||
Net cash flows provided by operating activities | 181,474 | — | 181,474 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Distributions from (investment in) unconsolidated subsidiary | — | — | — | |||||||||
Rent received from direct finance lease | — | — | — | |||||||||
Investment in direct finance lease | — | — | — | |||||||||
Purchase of flight equipment | (632,944 | ) | — | (632,944 | ) | |||||||
Proceeds from sale of aircraft, net | 48,539 | — | 48,539 | |||||||||
Payments for aircraft improvement | — | — | — | |||||||||
Payments for maintenance | (24,185 | ) | — | (24,185 | ) | |||||||
Net cash flows used in investing activities | (608,590 | ) | — | (608,590 | ) | |||||||
Cash Flows from Financing Activities | ||||||||||||
Restricted cash and cash equivalents | (39,731 | ) | — | (39,731 | ) | |||||||
Security deposits received | 13,910 | — | 13,910 | |||||||||
Security deposits returned | (7,271 | ) | — | (7,271 | ) | |||||||
Maintenance payment liability receipts | 56,968 | — | 56,968 | |||||||||
Maintenance payment liability disbursements | (16,612 | ) | — | (16,612 | ) | |||||||
Net swap termination payments | — | — | — | |||||||||
Debt extinguishment costs | (3,856 | ) | — | (3,856 | ) | |||||||
Debt issuance costs | (11,825 | ) | — | (11,825 | ) | |||||||
Proceeds from unsecured borrowings | 291,389 | — | 291,389 | |||||||||
Proceeds from secured borrowings | 688,975 | — | 688,975 | |||||||||
Repayment of secured borrowings | (444,607 | ) | — | (444,607 | ) | |||||||
Proceeds from issuance of shares, net of fees paid | 172,595 | — | 172,595 | |||||||||
Shares repurchased | — | — | — | |||||||||
Dividends paid | (30,531 | ) | — | (30,531 | ) | |||||||
Dividend equivalents | (940 | ) | — | (940 | ) | |||||||
Net cash flows provided by financing activities | 668,464 | — | 668,464 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | — | |||||||||
Net increase in cash and cash equivalents | 241,348 | — | 241,348 | |||||||||
Cash and cash equivalents at beginning of year | 163,124 | — | 163,124 | |||||||||
Cash and cash equivalents at end of year | $ | 404,472 | $ | — | $ | 404,472 | ||||||
Supplemental Disclosure: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 97,481 | $ | — | $ | 97,481 | ||||||
Taxes | 84 | — | 84 | |||||||||
Noncash Activities: | ||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 1,414 | — | 1,414 | |||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance | 4,446 | — | 4,446 | |||||||||
Other liabilities applied to maintenance payment liability and rent receivables | — | — | — | |||||||||
Noncash investing activities: | ||||||||||||
Aircraft improvement | 2,334 | — | 2,334 | |||||||||
Noncash activities in connection with purchase of aircraft | 1,774 | — | 1,774 | |||||||||
Noncash activities in connection with sale of aircraft | 43,500 | — | 43,500 |
● | Flight equipment where original |
● | 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. |
● |
● | Operating lease revenue. The Company receives lease |
● | 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 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. |
● | Finance lease income. Revenue from |
3. | SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS |
Years ended | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
(Dollars in thousands) | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 113,710 | $ | 110,351 | $ | 132,780 | ||||||
Taxes | 2,155 | 460 | 384 | |||||||||
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 | |||||||||
Noncash investing activities: | ||||||||||||
Aircraft improvement | 192 | 5,245 | 1,587 | |||||||||
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 |
4. | INVESTMENT IN |
December 31, 2015 | December 31, 2014 | |||||||||||||||
(Dollars in thousands) | December 31, 2017 | December 31, 2016 | ||||||||||||||
Total minimum lease payments receivable | $ | 45,901 | $ | — | $ | 13,200 | $ | 15,080 | ||||||||
Estimated unguaranteed residual value of leased asset | 15,000 | — | 4,227 | 4,227 | ||||||||||||
Unearned finance income | (26,023 | ) | — | (3,481 | ) | (4,212 | ) | |||||||||
Net Investment in Direct Finance Lease | $ | 34,878 | $ | — | ||||||||||||
Net Investment in Finance Lease | $ | 13,946 | $ | 15,095 |
Year ending December 31, | (Dollars in thousands) | (Dollars in thousands) | ||||||
2016 | $ | 4,920 | ||||||
2017 | 4,920 | |||||||
2018 | 4,920 | $ | 1,800 | |||||
2019 | 4,920 | 1,800 | ||||||
2020 | 4,810 | 1,800 | ||||||
2021 | 1,800 | |||||||
2022 | 1,800 | |||||||
Thereafter | 21,411 | 4,200 | ||||||
Future minimum rental payments under finance lease | $ | 45,901 | $ | 13,200 |
5. | FLIGHT EQUIPMENT HELD FOR SALE |
6. | FLIGHT EQUIPMENT HELD FOR OPERATING LEASE |
December 31, 2015 | December 31, 2014 | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||
As restated | December 31, 2017 | December 31, 2016 | ||||||||||||||
Cost | $ | 3,059,974 | $ | 4,257,114 | $ | 3,574,202 | $ | 3,180,160 | ||||||||
Accumulated depreciation | (474,548 | ) | (700,230 | ) | (612,458 | ) | (486,339 | ) | ||||||||
Flight equipment held for operating lease, net | $ | 2,585,426 | $ | 3,556,884 | $ | 2,961,744 | $ | 2,693,821 |
December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
As restated | As restated | December 31, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||
Europe: | ||||||||||||||||||||||||||||||||
Spain | $ | 175,593 | 6 | % | $ | 57,845 | 2 | % | ||||||||||||||||||||||||
Turkey | 135,764 | 5 | % | 142,787 | 5 | % | ||||||||||||||||||||||||||
United Kingdom | $ | 244,179 | 9 | % | $ | 375,178 | 10 | % | 128,116 | 4 | % | 143,560 | 5 | % | ||||||||||||||||||
Turkey | 171,861 | 7 | % | 270,037 | 8 | % | ||||||||||||||||||||||||||
Germany | — | — | 98,483 | 4 | % | |||||||||||||||||||||||||||
Russia | 16,332 | — | 17,582 | 1 | % | |||||||||||||||||||||||||||
Other | 359,929 | 14 | % | 610,626 | 17 | % | 235,013 | 8 | % | 179,155 | 7 | % | ||||||||||||||||||||
Europe — Total | 775,969 | 30 | % | 1,255,841 | 35 | % | 690,818 | 23 | % | 639,412 | 24 | % | ||||||||||||||||||||
Asia and South Pacific: | ||||||||||||||||||||||||||||||||
India | 601,072 | 20 | % | 574,853 | 21 | % | ||||||||||||||||||||||||||
Philippines | 289,558 | 11 | % | 450,090 | 13 | % | 268,504 | 9 | % | 279,031 | 10 | % | ||||||||||||||||||||
Indonesia | 204,840 | 7 | % | 62,921 | 2 | % | ||||||||||||||||||||||||||
China | 221,576 | 9 | % | 287,374 | 8 | % | 186,083 | 6 | % | 194,774 | 7 | % | ||||||||||||||||||||
India | 208,009 | 8 | % | 148,283 | 4 | % | ||||||||||||||||||||||||||
Other | 224,015 | 8 | % | 446,489 | 13 | % | 152,371 | 5 | % | 153,323 | 7 | % | ||||||||||||||||||||
Asia and South Pacific — Total | 943,158 | 36 | % | 1,332,236 | 38 | % | 1,412,870 | 47 | % | 1,264,902 | 47 | % | ||||||||||||||||||||
Mexico, South and Central America: | ||||||||||||||||||||||||||||||||
Chile | 89,406 | 4 | % | 247,165 | 7 | % | 83,097 | 3 | % | 86,251 | 3 | % | ||||||||||||||||||||
Other | 87,561 | 3 | % | 165,858 | 5 | % | 79,177 | 3 | % | 83,368 | 3 | % | ||||||||||||||||||||
Mexico, South and Central America — Total | 176,967 | 7 | % | 413,023 | 12 | % | 162,274 | 6 | % | 169,619 | 6 | % | ||||||||||||||||||||
North America: | ||||||||||||||||||||||||||||||||
United States | 218,363 | 9 | % | 300,401 | 8 | % | 147,580 | 5 | % | 156,472 | 6 | % | ||||||||||||||||||||
Other | 57,906 | 2 | % | 60,780 | 2 | % | 52,182 | 2 | % | 55,044 | 2 | % | ||||||||||||||||||||
North America — Total | 276,269 | 11 | % | 361,181 | 10 | % | 199,762 | 7 | % | 211,516 | 8 | % | ||||||||||||||||||||
Middle East and Africa: | ||||||||||||||||||||||||||||||||
Ethiopia | 342,736 | 13 | % | 25,471 | 1 | % | 322,896 | 11 | % | 332,817 | 12 | % | ||||||||||||||||||||
Other | 51,056 | 2 | % | 84,516 | 2 | % | 116,273 | 4 | % | 75,555 | 3 | % | ||||||||||||||||||||
Middle East and Africa — Total | 393,792 | 15 | % | 109,987 | 3 | % | 439,169 | 15 | % | 408,372 | 15 | % | ||||||||||||||||||||
Off-Lease — Total | 19,271 | 1 | % | 84,616 | 2 | % | 56,851 | 2 | % | — | — | |||||||||||||||||||||
Total flight equipment held for operating lease, net | $ | 2,585,426 | 100 | % | $ | 3,556,884 | 100 | % | $ | 2,961,744 | 100 | % | $ | 2,693,821 | 100 | % |
Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Years ended | |||||||||||||||||||||||||||||||||||||||||||||||
As restated | As restated | As restated | As restated | 2017 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||||||||
Europe: | ||||||||||||||||||||||||||||||||||||||||||||||||
Spain | $ | 11,199 | 3 | % | $ | 5,361 | 2 | % | $ | 9,191 | 2 | % | ||||||||||||||||||||||||||||||||||||
Turkey | 17,103 | 5 | % | 24,593 | 8 | % | 29,847 | 7 | % | |||||||||||||||||||||||||||||||||||||||
United Kingdom | $ | 50,742 | 12 | % | $ | 46,281 | 11 | % | $ | 48,668 | 14 | % | 29,182 | 8 | % | 34,498 | 11 | % | 50,742 | 12 | % | |||||||||||||||||||||||||||
Turkey | 29,847 | 7 | % | 27,069 | 7 | % | 13,702 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Germany | 26,457 | 8 | % | 13,836 | 4 | % | 18,201 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Russia | 24,095 | 6 | % | 9,017 | 2 | % | 10,288 | 3 | % | 1,927 | 1 | % | 3,141 | 1 | % | 24,095 | 6 | % | ||||||||||||||||||||||||||||||
Other | 73,872 | 17 | % | 73,660 | 19 | % | 79,359 | 22 | % | 27,253 | 8 | % | 25,253 | 8 | % | 46,480 | 11 | % | ||||||||||||||||||||||||||||||
Europe — Total | 178,556 | 42 | % | 156,027 | 39 | % | 152,017 | 43 | % | 113,121 | 33 | % | 106,682 | 34 | % | 178,556 | 42 | % | ||||||||||||||||||||||||||||||
Asia and South Pacific: | ||||||||||||||||||||||||||||||||||||||||||||||||
India | 64,381 | 18 | % | 39,640 | 13 | % | 19,572 | 4 | % | |||||||||||||||||||||||||||||||||||||||
Philippines | 38,677 | 9 | % | 12,947 | 3 | % | — | — | 29,825 | 9 | % | 29,129 | 9 | % | 38,677 | 9 | % | |||||||||||||||||||||||||||||||
Indonesia | 16,308 | 5 | % | 8,320 | 3 | % | 7,915 | 2 | % | |||||||||||||||||||||||||||||||||||||||
China | 37,943 | 9 | % | 47,049 | 12 | % | 41,332 | 12 | % | 22,611 | 6 | % | 23,882 | 8 | % | 37,943 | 9 | % | ||||||||||||||||||||||||||||||
India | 19,572 | 4 | % | 32,675 | 8 | % | 19,854 | 6 | % | |||||||||||||||||||||||||||||||||||||||
Other | 39,056 | 9 | % | 45,855 | 11 | % | 32,840 | 9 | % | 19,263 | 6 | % | 18,967 | 5 | % | 31,141 | 7 | % | ||||||||||||||||||||||||||||||
Asia and South Pacific — Total | 135,248 | 31 | % | 138,526 | 34 | % | 94,026 | 27 | % | 152,388 | 44 | % | 119,938 | 38 | % | 135,248 | 31 | % | ||||||||||||||||||||||||||||||
Mexico, South and Central America: | ||||||||||||||||||||||||||||||||||||||||||||||||
Chile | 24,336 | 6 | % | 28,116 | 7 | % | 10,055 | 3 | % | 8,939 | 3 | % | 8,939 | 3 | % | 24,336 | 6 | % | ||||||||||||||||||||||||||||||
Other | 16,732 | 4 | % | 21,733 | 5 | % | 33,013 | 9 | % | 8,626 | 2 | % | 8,768 | 3 | % | 16,732 | 4 | % | ||||||||||||||||||||||||||||||
Mexico, South and Central America — Total | 41,068 | 10 | % | 49,849 | 12 | % | 43,068 | 12 | % | 17,565 | 5 | % | 17,707 | 6 | % | 41,068 | 10 | % | ||||||||||||||||||||||||||||||
North America: | ||||||||||||||||||||||||||||||||||||||||||||||||
United States | 37,316 | 9 | % | 41,531 | 10 | % | 40,482 | 12 | % | 17,647 | 5 | % | 24,591 | 8 | % | 37,316 | 9 | % | ||||||||||||||||||||||||||||||
Other | 6,380 | 1 | % | 3,429 | 1 | % | 3,891 | 1 | % | 6,237 | 2 | % | 6,223 | 2 | % | 6,380 | 1 | % | ||||||||||||||||||||||||||||||
North America — Total | 43,696 | 10 | % | 44,960 | 11 | % | 44,373 | 13 | % | 23,884 | 7 | % | 30,814 | 10 | % | 43,696 | 10 | % | ||||||||||||||||||||||||||||||
Middle East and Africa: | ||||||||||||||||||||||||||||||||||||||||||||||||
Ethiopia | 22,808 | 5 | % | 4,501 | 1 | % | 4,416 | 1 | % | 30,018 | 9 | % | 30,084 | 10 | % | 22,808 | 5 | % | ||||||||||||||||||||||||||||||
Other | 8,315 | 2 | % | 12,700 | 3 | % | 13,892 | 4 | % | 9,918 | 2 | % | 8,357 | 2 | % | 8,315 | 2 | % | ||||||||||||||||||||||||||||||
Middle East and Africa — Total | 31,123 | 7 | % | 17,201 | 4 | % | 18,308 | 5 | % | 39,936 | 11 | % | 38,441 | 12 | % | 31,123 | 7 | % | ||||||||||||||||||||||||||||||
Total Operating Lease Revenue | $ | 429,691 | 100 | % | $ | 406,563 | 100 | % | $ | 351,792 | 100 | % | $ | 346,894 | 100 | % | $ | 313,582 | 100 | % | $ | 429,691 | 100 | % |
Year ending December 31, | (Dollars in thousands) | (Dollars in thousands) | ||||||
2016 | 281,051 | |||||||
2017 | 262,705 | |||||||
2018 | 229,243 | $ | 355,172 | |||||
2019 | 191,089 | 320,670 | ||||||
2020 | 168,381 | 280,506 | ||||||
2021 | 245,208 | |||||||
2022 | 209,542 | |||||||
Thereafter | 602,852 | 734,445 | ||||||
Future minimum rental payments under operating leases | $ | 1,735,321 | $ | 2,145,543 |
Year ending December 31, | (Dollars in thousands) | |||||||
2016 | $ | 13,803 | ||||||
2017 | 13,484 | |||||||
2018 | 10,716 | $ | 9,137 | |||||
2019 | 7,351 | 8,449 | ||||||
2020 | 4,324 | 5,849 | ||||||
2021 | 3,594 | |||||||
2022 | 2,218 | |||||||
Thereafter | 2,672 | 1,044 | ||||||
Future amortization of lease incentives | $ | 52,350 | $ | 30,291 |
7. | MAINTENANCE RIGHTS |
December 31, 2015 | December 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Maintenance rights, net beginning balance | $ | 144,920 | $ | 122,721 | ||||
Acquisition | 8,606 | 45,086 | ||||||
Capitalized to aircraft improvements | (6,591 | ) | (48 | ) | ||||
Maintenance rights written off as end of lease income | (5,781 | ) | 1,895 | |||||
Cash (receipts) payments in settlement of maintenance rights | (5,253 | ) | 2,453 | |||||
Maintenance rights written off due to sale of aircraft | (41,408 | ) | (27,187 | ) | ||||
Maintenance rights, net at end of period | $ | 94,493 | $ | 144,920 |
December 31, 2017 | December 31, 2016 | |||||||
Maintenance rights, net beginning balance | $ | 101,969 | $ | 94,493 | ||||
Acquisitions | 25,033 | 28,412 | ||||||
Capitalized to aircraft improvements | (192 | ) | (5,245 | ) | ||||
Maintenance rights recognized into earnings | (465 | ) | — | |||||
Cash receipts from maintenance rights | — | (9,513 | ) | |||||
Maintenance rights associated with aircraft sold | 4,954 | (6,178 | ) | |||||
Maintenance rights, net at end of year | $ | 131,299 | $ | 101,969 |
8. | INVESTMENT IN UNCONSOLIDATED SUBSIDIARY |
9. | OTHER ASSETS |
December 31, 2015 | December 31, 2014 | December 31, 2017 | December 31, 2016 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
As restated | ||||||||||||||||
Loan issuance costs, net | $ | 11,300 | $ | 19,269 | ||||||||||||
Lease costs, net | 2,176 | 3,289 | $ | 2,045 | $ | 1,730 | ||||||||||
Unamortized lease premiums | — | 1,861 | ||||||||||||||
Value added tax and general sales tax receivables, net | 2,915 | 2,994 | ||||||||||||||
Other assets | 4,274 | 4,530 | 4,010 | 1,844 | ||||||||||||
Total other assets | $ | 17,750 | $ | 28,949 | $ | 8,970 | $ | 6,568 |
10. | UNSECURED BORROWINGS |
Balance as of | Balance as of | |||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2017 | December 31, 2016 | |||||||||||||
(in thousands) | (Dollars in thousands) | |||||||||||||||
Outstanding principal balance: | ||||||||||||||||
2020 Notes | $ | 375,000 | $ | 375,000 | $ | — | $ | 375,000 | ||||||||
2021 Notes | 325,000 | 325,000 | 325,000 | 325,000 | ||||||||||||
2024 Notes | 300,000 | — | ||||||||||||||
Total outstanding principal balance | 700,000 | 700,000 | 625,000 | 700,000 | ||||||||||||
Unamortized discount | (8,891 | ) | (10,548 | ) | ||||||||||||
Unamortized debt discounts and loan costs | (9,078 | ) | (8,610 | ) | ||||||||||||
Unsecured borrowings, net | $ | 691,109 | $ | 689,452 | $ | 615,922 | $ | 691,390 |
If redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | |||
2017 | 104.781 | % | ||
2018 | 103.188 | % | ||
2019 | 101.594 | % | ||
2020 and thereafter | 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 | % |
If redeemed during the 12-month period commencing on December 15 of the years set forth below: | Redemption Price | |||
2016 | 105.063 | % | ||
2017 | 103.375 | % | ||
2018 | 101.688 | % | ||
2019 and thereafter | 100.000 | % |
If redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | |||
2017 | 104.781 | % | ||
2018 | 103.188 | % | ||
2019 | 101.594 | % | ||
2020 and thereafter | 100.000 | % |
11. | SECURED BORROWINGS |
Net carrying value as of | Weighted average interest rate(1) as of | ||||||||||||||||||||||||||||||||||||
December 31, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | Maturity date | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Outstanding principal balance as of December 31, | Weighted average interest rate(1) as of December 31, | |||||||||||||||||||||||||||||||||||
As restated | 2017 | 2016 | 2017 | 2016 | Maturity date | ||||||||||||||||||||||||||||||||
Securitization Notes | $ | 288,869 | $ | 532,035 | 3.38 | % | 3.04 | % | November 2033 | $ | 101,551 | $ | 139,741 | 3.06 | % | 3.36 | % | November 2033 | |||||||||||||||||||
Nord LB Facility | 251,849 | 408,484 | 4.04 | % | 4.15 | % | November 2018 | 153,176 | 171,509 | 4.47 | % | 4.14 | % | November 2018 | |||||||||||||||||||||||
CBA Facility | 87,070 | 113,208 | 5.02 | % | 4.63 | % | June 2018 – October 2020 | 49,080 | 56,146 | 5.53 | % | 5.45 | % | October 2020 | |||||||||||||||||||||||
Term Loan | 421,975 | 443,383 | 4.39 | % | 5.19 | % | August 2019 | 431,271 | 404,016 | 4.25 | % | 4.41 | % | February 2023 | |||||||||||||||||||||||
Fly Acquisition II Facility | — | 121,589 | — | 4.15 | % | — | |||||||||||||||||||||||||||||||
Magellan Acquisition Limited Facility | 331,768 | — | 3.15 | % | — | December 2025 | |||||||||||||||||||||||||||||||
Fly Acquisition III Facility | 86,520 | 113,045 | 3.41 | % | 2.88 | % | February 2022 | ||||||||||||||||||||||||||||||
Other Aircraft Secured Borrowings | 655,548 | 713,970 | 3.63 | % | 3.89 | % | February 2016 – January 2027 | 905,525 | 980,967 | 3.83 | % | 3.50 | % | September 2019 – June 2028 | |||||||||||||||||||||||
Unamortized debt discounts and loan costs | (29,216 | ) | (33,439 | ) | |||||||||||||||||||||||||||||||||
Total | $ | 1,705,311 | $ | 2,332,669 | $ | 2,029,675 | $ | 1,831,985 |
(1) | Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. |
Balance as of | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Outstanding principal balance | $ | 295,786 | $ | 546,465 | ||||
Unamortized debt discount | (6,917 | ) | (14,430 | ) | ||||
Securitization Notes, net | $ | 288,869 | $ | 532,035 |
Balance as of | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Outstanding principal balance | $ | 255,278 | $ | 416,249 | ||||
Unamortized debt discount | (3,429 | ) | (7,765 | ) | ||||
Nord LB Facility balance, net | $ | 251,849 | $ | 408,484 |
Balance as of | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Outstanding principal balance: | ||||||||
Tranche A | $ | 44,235 | $ | 65,462 | ||||
Tranche B | 43,955 | 49,350 | ||||||
Total outstanding principal balance | 88,190 | 114,812 | ||||||
Unamortized debt discount | (1,120 | ) | (1,604 | ) | ||||
CBA Facility balance, net | $ | 87,070 | $ | 113,208 |
As of | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
Fixed rate loans: | ||||||||
Tranche A | 5.57 | % | 5.52 | % | ||||
Tranche B | 4.47 | % | 4.47 | % | ||||
Variable rate loans: | ||||||||
Tranche A | — | 2.66 | % | |||||
Facility weighted average interest rate | 5.02 | % | 4.63 | % |
Balance as of | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Outstanding principal balance | $ | 427,781 | $ | 451,547 | ||||
Unamortized debt discount | (5,806 | ) | (8,164 | ) | ||||
Term Loan balance, net | $ | 421,975 | $ | 443,383 |
Balance as of | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
Outstanding principal balance | $ | — | $ | 121,589 |
Balance as of | Weighted Average Interest Rates(1) | Maturity Date | ||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||||
As restated | ||||||||||||||
(Dollars in thousands) | ||||||||||||||
Outstanding principal balance | $ | 663,069 | $ | 723,023 | 3.63 | % | February 2016 – January 2027 | |||||||
Unamortized debt discount | (7,521 | ) | (9,053 | ) | ||||||||||
Other aircraft secured borrowings balance, net | $ | 655,548 | $ | 713,970 |
Year ending December 31, | (Dollars in thousands) | |||||||
2016 | $ | 291,988 | ||||||
2017 | 125,950 | |||||||
2018 | 314,554 | $ | 309,914 | |||||
2019 | 459,122 | 169,230 | ||||||
2020 | 93,932 | 187,184 | ||||||
2021 | 152,497 | |||||||
2022 | 174,436 | |||||||
Thereafter | 444,558 | 1,065,630 | ||||||
Future minimum principal payments due | $ | 1,730,104 | $ | 2,058,891 |
12. | DERIVATIVES |
Type | Quantity | Maturity Dates | Hedge Interest Rates | Swap Contract Notional Amount | Fair Value of Derivative Asset | Credit Risk Adjustment | Adjusted Fair Value of Derivative Asset | Gain Recognized in Accumulated Comprehensive Loss | Loss Recognized into Earnings | 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 | ||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | 3 | 11/14/2018 | 0.90% - 1.03 | % | $ | 57,447 | $ | 210 | $ | 3 | $ | 213 | $ | 186 | $ | (9 | ) | 9 | 11/14/2018-1/11/23 | 0.90% - 4.30 | % | $ | 175,552 | $ | 2,625 | $ | 2,090 | $ | (16 | ) | ||||||||||||||||||||||||||||
Accrued interest | — | (18 | ) | — | (18 | ) | — | — | — | 18 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total – designated derivative assets | 3 | $ | 57,447 | $ | 192 | $ | 3 | $ | 195 | $ | 186 | $ | (9 | ) | 9 | $ | 175,552 | $ | 2,643 | $ | 2,090 | $ | (16 | ) |
Type | Quantity | Maturity Dates | Hedge Interest Rates | Swap Contract Notional Amount | Fair Value of Derivative Liability | Credit Risk Adjustment | Adjusted Fair Value of Derivative Liability | Loss Recognized in Accumulated Comprehensive Loss | Loss Recognized into Earnings | 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 | ||||||||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | 14 | 2/9/18-9/27/25 | 1.18% - 6.22 | % | $ | 839,999 | $ | (19,141 | ) | $ | 666 | $ | (18,475 | ) | $ | (16,243 | ) | $ | (368 | ) | 7 | 3/14/18-9/27/25 | 1.98% - 6.22 | % | $ | 206,447 | $ | (2,735 | ) | $ | (2,393 | ) | $ | 4 | ||||||||||||||||||||||||
Accrued interest | — | (823 | ) | — | (823 | ) | — | — | — | (113 | ) | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Total – designated derivative liabilities | 14 | $ | 839,999 | $ | (19,964 | ) | $ | 666 | $ | (19,298 | ) | $ | (16,243 | ) | $ | (368 | ) | 7 | $ | 206,447 | $ | (2,848 | ) | $ | (2,393 | ) | $ | 4 |
Type | Quantity | Maturity Dates | Hedge Interest Rates | Swap Contract Notional Amount | Fair Value of Derivative Asset | Credit Risk Adjustment | Adjusted Fair Value of Derivative Asset | Loss Recognized into Earnings | |||||||||||||||||||||
Interest rate swap contracts | 1 | 11/14/2018 | 1.10 | % | $ | 20,219 | $ | 51 | $ | 2 | $ | 53 | $ | (53 | ) | ||||||||||||||
Accrued interest | — | (7 | ) | — | (7 | ) | — | ||||||||||||||||||||||
Total – dedesignated derivative assets | 1 | $ | 20,219 | $ | 44 | $ | 2 | $ | 46 | $ | (53 | ) |
Type | Quantity | Maturity Dates | Hedge Interest Rates | Swap Contract Notional Amount | Fair Value of Derivative Liability | Credit Risk Adjustment | Adjusted Fair Value of Derivative Liability | Loss Recognized into Earnings | Quantity | Maturity Dates | Hedge Interest Rates | Swap Contract Notional Amount | Credit Risk Adjusted Fair Market Value | Gain Recognized into Earnings | ||||||||||||||||||||||||||||||||||||
Interest rate swap contracts | 2 | 11/14/2018 | 1.18% - 1.22 | % | $ | 42,224 | $ | (16 | ) | $ | 4 | $ | (12 | ) | $ | (263 | ) | 4 | 2/9/2018-2/9/2019 | 1.69% - 3.47 | % | $ | 318,747 | $ | (4,312 | ) | $ | 204 | ||||||||||||||||||||||
Accrued interest | — | (17 | ) | — | (17 | ) | — | — | (184 | ) | — | |||||||||||||||||||||||||||||||||||||||
Total – dedesignated derivative liabilities | 2 | $ | 42,224 | $ | (33 | ) | $ | 4 | $ | (29 | ) | $ | (263 | ) | 4 | $ | 318,747 | $ | (4,496 | ) | $ | 204 |
13. | INCOME TAXES |
Years ended | ||||||||||||
2017 | 2016 | 2015 | ||||||||||
Current tax expense: | ||||||||||||
Ireland | $ | — | $ | — | $ | 33 | ||||||
Luxembourg | 195 | 145 | 252 | |||||||||
Australia | 4,062 | 1,742 | 138 | |||||||||
Other | 43 | 33 | 57 | |||||||||
Current tax expense — total | 4,300 | 1,920 | 480 | |||||||||
Deferred tax (benefit) expense: | ||||||||||||
Ireland | 8,710 | (10,812 | ) | 4,558 | ||||||||
Australia | (1,743 | ) | 1,615 | 334 | ||||||||
Other | 65 | — | 27 | |||||||||
Deferred tax (benefit) expense — total | 7,032 | (9,197 | ) | 4,919 | ||||||||
Total income tax (benefit) expense | $ | 11,332 | $ | (7,277 | ) | $ | 5,399 |
December 31, 2017 | December 31, 2016 | |||||||
Deferred tax asset: | ||||||||
Net operating loss carry forwards | $ | 170,960 | $ | 151,575 | ||||
Net unrealized losses on derivative instruments | 390 | 1,181 | ||||||
Basis difference on acquisition of GAAM Australian assets | 7,314 | 6,786 | ||||||
Other | 55 | 224 | ||||||
Valuation allowance | (39,484 | ) | (30,524 | ) | ||||
Total deferred tax asset | 139,235 | 129,242 | ||||||
Deferred tax liability: | ||||||||
Excess of tax depreciation over book depreciation | (153,447 | ) | (137,249 | ) | ||||
Book/tax differences identified in connection with GAAM Portfolio acquisition | (412 | ) | (438 | ) | ||||
Net earnings of non-European Union member subsidiaries | (3,745 | ) | (3,957 | ) | ||||
Withholding tax on Australian unrepatriated earnings | (1,800 | ) | — | |||||
Total deferred tax liability | (159,404 | ) | (141,644 | ) | ||||
Deferred tax liability, net | $ | (20,169 | ) | $ | (12,402 | ) |
Year ended December 31, 2015 | Year ended December 31, 2014 | Year ended December 31, 2013 | ||||||||||
(Dollars in thousands) | ||||||||||||
As restated | As restated | |||||||||||
Current tax (benefit) expense: | ||||||||||||
Ireland | $ | 33 | $ | — | $ | 400 | ||||||
Luxembourg | 252 | 210 | 175 | |||||||||
United States | — | 2 | (1,131 | ) | ||||||||
Australia | 138 | — | — | |||||||||
Other | 57 | 48 | 20 | |||||||||
Current tax expense (benefit) — total | 480 | 260 | (536 | ) | ||||||||
Deferred tax expense (benefit): | ||||||||||||
Ireland | 4,558 | 8,208 | 1,082 | |||||||||
Australia | 334 | 241 | 2,601 | |||||||||
Other | 27 | (18 | ) | (13 | ) | |||||||
Deferred tax expense (benefit) — total | 4,919 | 8,431 | 3,670 | |||||||||
Total income tax expense | $ | 5,399 | $ | 8,691 | $ | 3,134 |
December 31, 2015 | December 31, 2014 | |||||||
(Dollars in thousands) | ||||||||
As restated | ||||||||
Deferred tax asset: | ||||||||
Net operating loss carry forwards | $ | 181,370 | $ | 221,026 | ||||
Net unrealized losses on derivative instruments | 1,999 | 2,483 | ||||||
Basis difference on acquisition of GAAM Australian assets | 6,844 | 9,597 | ||||||
Other | 240 | 311 | ||||||
Valuation allowance | (23,029 | ) | (22,418 | ) | ||||
Total deferred tax asset | 167,424 | 210,999 | ||||||
Deferred tax liability: | ||||||||
Excess of tax depreciation over book depreciation | (171,084 | ) | (206,719 | ) | ||||
Book/tax differences identified in connection with GAAM Portfolio acquisition | (911 | ) | (1,634 | ) | ||||
Net earnings of non-European Union member subsidiaries | (16,170 | ) | (17,952 | ) | ||||
Total deferred tax liability | (188,165 | ) | (226,305 | ) | ||||
Deferred tax liability, net | $ | (20,741 | ) | $ | (15,306 | ) |
Year ended December 31, 2015 | Year ended December 31, 2014 | Year ended December 31, 2013 | Years ended | |||||||||||||||||||||
As restated | As restated | 2017 | 2016 | 2015 | ||||||||||||||||||||
Irish statutory corporate tax rate on trading income | 12.5 | % | 12.5 | % | 12.5 | % | 12.5 | % | 12.5 | % | 12.5 | % | ||||||||||||
Valuation allowances | 12.0 | % | 3.6 | % | 0.8 | % | 59.9 | % | (19.8 | )% | 12.0 | % | ||||||||||||
Equity earnings from Fly-Z/C LP | (0.5 | )% | (0.4 | )% | (0.3 | )% | (0.4 | )% | 0.2 | % | (0.5 | )% | ||||||||||||
Tax impact of repurchased and resold Notes | (3.2 | )% | (0.6 | )% | (0.8 | )% | (0.8 | )% | 1.3 | % | (3.2 | )% | ||||||||||||
Share-based compensation | 0.1 | % | — | 0.7 | % | |||||||||||||||||||
Foreign tax rate differentials | (9.7 | )% | (3.9 | )% | (1.4 | )% | (18.4 | )% | 7.8 | % | (9.7 | )% | ||||||||||||
True-up of prior year tax provision | 1.4 | % | 0.2 | % | (1.7 | )% | 2.2 | % | — | 1.4 | % | |||||||||||||
Non-taxable gain on debt extinguishment | — | (1.2 | )% | (5.2 | )% | — | 0.3 | % | — | |||||||||||||||
Non-deductible interest expense, transaction fees and expenses | 6.1 | % | 2.4 | % | 0.9 | % | 12.2 | % | (4.8 | )% | 6.1 | % | ||||||||||||
Deductible intra-group interest | — | 30.9 | % | — | ||||||||||||||||||||
Unrealized foreign exchange loss on re-valuation of deferred tax balances | 0.5 | % | (8.6 | )% | — | |||||||||||||||||||
Withholding tax | 13.3 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||
Other | 0.4 | % | 0.0 | % | (0.0 | )% | 0.3 | % | 0.2 | % | 0.5 | % | ||||||||||||
Income tax expense | 19.1 | % | 12.6 | % | 5.5 | % | ||||||||||||||||||
Effective tax rate | 81.3 | % | 20.0 | % | 19.1 | % |
14. | OTHER LIABILITIES |
December 31, 2015 | December 31, 2014 | December 31, 2017 | December 31, 2016 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Net current tax provision | $ | 645 | $ | 581 | ||||||||||||
Current tax payable | $ | 4,226 | $ | 2,036 | ||||||||||||
Lease incentive obligation | 21,217 | 25,503 | 20,306 | 24,757 | ||||||||||||
Deferred rent payable | 11,974 | 11,461 | ||||||||||||||
Deferred rent | 8,444 | 3,792 | ||||||||||||||
Refundable deposits | 4,240 | 4,079 | 805 | 350 | ||||||||||||
Other | 14,050 | 266 | 5,875 | 9,319 | ||||||||||||
Total other liabilities | $ | 52,126 | $ | 41,890 | $ | 39,656 | $ | 40,254 |
15. |
16. | SHARE-BASED COMPENSATION |
Number of shares | Weighted average exercise price | Weighted average remaining contractual life (in years) | ||||||||||
Outstanding at December 31, 2012 | 892,004 | $ | 12.74 | 8.1 | ||||||||
SARs granted | — | — | — | |||||||||
SARs exercised | (3,370 | ) | 12.42 | — | ||||||||
SARs canceled or forfeited | — | — | — | |||||||||
Outstanding at December 31, 2013 | 888,634 | $ | 12.74 | 7.1 | ||||||||
SARs granted | — | — | — | |||||||||
SARs exercised | (58,519 | ) | 12.80 | — | ||||||||
SARs canceled or forfeited | (8,998 | ) | 12.28 | — | ||||||||
Outstanding at December 31, 2014 | 821,117 | 12.74 | 6.1 | |||||||||
SARs granted | — | — | — | |||||||||
SARs exercised | — | — | — | |||||||||
SARs canceled or forfeited | — | — | — | |||||||||
Outstanding at December 31, 2015 | 821,117 | 12.74 | 5.1 | |||||||||
Exercisable at December 31, 2015 | 821,117 | $ | 12.74 |
Number of shares | Weighted average grant date fair value | |||||||
Outstanding and unvested at December 31, 2012 | 284,014 | 12.88 | ||||||
RSUs granted | — | — | ||||||
RSUs vested | (122,534 | ) | 12.98 | |||||
RSUs canceled or forfeited | — | — | ||||||
Outstanding and unvested at December 31, 2013 | 161,480 | $ | 12.81 | |||||
RSUs granted | — | — | ||||||
RSUs vested | (119,666 | ) | 12.99 | |||||
RSUs canceled or forfeited | (5,739 | ) | 12.28 | |||||
Outstanding and unvested at December 31, 2014 | 36,075 | $ | 12.28 | |||||
RSUs granted | — | — | ||||||
RSUs vested | (36,075 | ) | 12.28 | |||||
RSUs canceled or forfeited | — | — | ||||||
Outstanding and unvested at December 31, 2015 | — | $ | — |
17. | EARNINGS PER SHARE |
Year ended December 31, 2015 | Year ended December 31, 2014 | Year ended December 31, 2013 | ||||||||||||||||||||||
(Dollars in thousands, except share and per share data) | Years ended | |||||||||||||||||||||||
As restated | As restated | 2017 | 2016 | 2015 | ||||||||||||||||||||
Numerator | ||||||||||||||||||||||||
Net income | $ | 22,798 | $ | 60,184 | $ | 53,940 | ||||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | |||||||||||||||||
Less: | ||||||||||||||||||||||||
Dividends declared and paid to shareholders | (41,388 | ) | (41,392 | ) | (30,531 | ) | — | — | (41,388 | ) | ||||||||||||||
Dividend equivalents paid to vested RSUs and SARs | (1,054 | ) | (1,426 | ) | (940 | ) | — | — | (1,054 | ) | ||||||||||||||
Net income attributable to common shareholders | $ | (19,644 | ) | $ | 17,366 | $ | 22,469 | |||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 2,598 | $ | (29,112 | ) | $ | (19,644 | ) | ||||||||||||||||
Denominator | ||||||||||||||||||||||||
Weighted average shares outstanding-Basic | 41,222,690 | 41,405,211 | 34,129,880 | 30,307,357 | 33,239,001 | 41,222,690 | ||||||||||||||||||
Dilutive common equivalent shares: | ||||||||||||||||||||||||
RSUs | 7,950 | 48,674 | 102,914 | — | — | 7,950 | ||||||||||||||||||
SARs | 84,509 | 73,699 | 10,662 | 46,068 | — | 84,509 | ||||||||||||||||||
Weighted average shares outstanding-Diluted | 41,315,149 | 41,527,584 | 34,243,456 | 30,353,425 | 33,239,001 | 41,315,149 | ||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||
Distributed earnings | $ | 1.00 | $ | 1.00 | $ | 0.89 | $ | — | $ | — | $ | 1.00 | ||||||||||||
Undistributed income (excess distribution) | $ | (0.48 | ) | $ | 0.42 | $ | 0.66 | $ | 0.09 | $ | (0.88 | ) | $ | (0.48 | ) | |||||||||
Basic earnings per share | $ | 0.52 | $ | 1.42 | $ | 1.55 | ||||||||||||||||||
Basic earnings (loss) per share | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | |||||||||||||||||
Diluted | ||||||||||||||||||||||||
Distributed earnings | $ | 1.00 | $ | 1.00 | $ | 0.89 | $ | — | $ | — | $ | 1.00 | ||||||||||||
Undistributed income (excess distribution) | $ | (0.48 | ) | $ | 0.42 | $ | 0.66 | $ | 0.09 | $ | (0.88 | ) | $ | (0.48 | ) | |||||||||
Diluted earnings per share | $ | 0.52 | $ | 1.42 | $ | 1.55 | ||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 |
18. | COMMITMENTS AND CONTINGENCIES |
19. | RELATED PARTY TRANSACTIONS |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed base fee payments (1) | $ | 2,043 | $ | 2,043 | $ | 2,043 | $ | 2,043 | $ | 2,043 | $ | 14,391 | $ | 24,606 | $ | 245 | $ | 245 | $ | 245 | $ | 245 | $ | 245 | $ | 1,470 | $ | 2,695 | ||||||||||||||||||||||||||||
Fixed administrative agency fee payments due by B&B Air Funding (1) | 851 | 851 | 851 | 851 | 851 | 5,997 | 10,252 | 108 | 69 | 31 | 12 | 12 | 13 | 245 | ||||||||||||||||||||||||||||||||||||||||||
Fixed administrative services fee due under the Term Loan (2) | 381 | 348 | 295 | 228 | 114 | 240 | 1,606 | 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) | 504 | 482 | 424 | 350 | 335 | 928 | 3,023 | 401 | 362 | 325 | 271 | 262 | 622 | 2,243 | ||||||||||||||||||||||||||||||||||||||||||
Fixed payments for Management Expenses (1) | 5,722 | 5,722 | 5,722 | 5,722 | 5,722 | 25,752 | 54,362 | |||||||||||||||||||||||||||||||||||||||||||||||||
Fixed payments for Management Expenses (1) (3) | 7,307 | 7,307 | 7,307 | 7,307 | 7,307 | 54,799 | 91,334 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 9,501 | $ | 9,446 | $ | 9,335 | $ | 9,194 | $ | 9,065 | $ | 47,308 | $ | 93,849 | $ | 8,905 | $ | 8,792 | $ | 8,629 | $ | 8,469 | $ | 8,249 | $ | 57,803 | $ | 100,847 |
(1) |
(2) | Assumes number of aircraft at December 31, |
(3) | Assumes an automatic extension for one additional term of five years to July 1, 2030. Also assumes net book value of aircraft at December 31, 2017 and Consumer Price Index rates in effect as of December 31, 2017 remain constant in future periods. |
20. | FAIR VALUE MEASUREMENTS |
As of December 31, 2015 | As of December 31, 2014 | As of December 31, 2017 | As of December 31, 2016 | |||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
As restated | ||||||||||||||||||||||||||||||||
�� | Principal Amount Outstanding | Fair Value | Principal Amount Outstanding | Fair Value | ||||||||||||||||||||||||||||
Securitization Notes | $ | 288,869 | $ | 252,897 | $ | 532,035 | $ | 467,228 | $ | 101,551 | $ | 95,839 | $ | 139,741 | $ | 134,850 | ||||||||||||||||
Nord LB Facility | 251,849 | 251,849 | 408,484 | 408,484 | 153,176 | 153,176 | 171,509 | 171,509 | ||||||||||||||||||||||||
CBA Facility | 87,070 | 87,070 | 113,208 | 113,208 | 49,080 | 49,080 | 56,146 | 56,146 | ||||||||||||||||||||||||
Term Loan | 421,975 | 421,921 | 443,383 | 449,289 | 431,271 | 431,271 | 404,016 | 406,804 | ||||||||||||||||||||||||
Fly Acquisition II Facility | — | — | 121,589 | 128,080 | ||||||||||||||||||||||||||||
Magellan Acquisition Limited Facility | 331,768 | 331,768 | — | — | ||||||||||||||||||||||||||||
Fly Acquisition III Facility | 86,520 | 86,520 | 113,045 | 113,045 | ||||||||||||||||||||||||||||
Other Aircraft Secured Borrowings | 655,548 | 653,992 | 713,970 | 716,063 | 905,525 | 905,525 | 980,967 | 980,967 | ||||||||||||||||||||||||
2020 Notes | 370,790 | 375,000 | 369,942 | 380,625 | — | — | 375,000 | 394,219 | ||||||||||||||||||||||||
2021 Notes | 320,319 | 333,125 | 319,510 | 321,750 | 325,000 | 339,235 | 325,000 | 340,438 | ||||||||||||||||||||||||
Derivative asset | 241 | 241 | 2,067 | 2,067 | ||||||||||||||||||||||||||||
Derivative liabilities | 19,327 | 19,327 | 23,311 | 23,311 | ||||||||||||||||||||||||||||
2024 Notes | 300,000 | 301,500 | — | — |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
December 31, 2015: | ||||||||||||||||
Derivative asset | — | $ | 241 | — | $ | 241 | ||||||||||
Derivative liabilities | — | 19,327 | — | 19,327 | ||||||||||||
December 31, 2014: | ||||||||||||||||
Derivative asset | — | $ | 2,067 | — | $ | 2,067 | ||||||||||
Derivative liabilities | — | 23,311 | — | 23,311 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
December 31, 2017: | ||||||||||||||||
Derivative assets | — | $ | 2,643 | — | $ | 2,643 | ||||||||||
Derivative liabilities | — | 7,344 | — | 7,344 | ||||||||||||
December 31, 2016: | ||||||||||||||||
Derivative assets | — | $ | 1,905 | — | $ | 1,905 | ||||||||||
Derivative liabilities | — | 13,281 | — | 13,281 |
21. | 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 |
(Dollars in thousands, except per share data) | March 31, 2015 | June 30, 2015 | September 30, 2015 | December 31, 2015 | ||||||||||||
As restated | As restated | As restated | ||||||||||||||
Total revenues | $ | 123,286 | $ | 102,822 | $ | 112,655 | $ | 123,634 | ||||||||
Net income | $ | 19,865 | $ | (43,695 | ) | $ | 27,483 | $ | 19,145 | |||||||
Earnings per share — Basic | $ | 0.47 | $ | (1.06 | ) | $ | 0.66 | $ | 0.47 | |||||||
Earnings per share — Diluted | $ | 0.47 | $ | (1.06 | ) | $ | 0.66 | $ | 0.47 |
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 | ) |
(Dollars in thousands, except per share data) | March 31, 2014 | June 30, 2014 | September 30, 2014 | December 31, 2014 | ||||||||||||
As restated | As restated | As restated | As restated | |||||||||||||
Total revenues | $ | 94,320 | $ | 108,566 | $ | 102,374 | $ | 120,288 | ||||||||
Net income | $ | 7,653 | $ | 21,746 | $ | 13,471 | $ | 17,314 | ||||||||
Earnings per share — Basic | $ | 0.17 | $ | 0.52 | $ | 0.32 | $ | 0.41 | ||||||||
Earnings per share — Diluted | $ | 0.17 | $ | 0.52 | $ | 0.32 | $ | 0.41 |
22. | SUBSEQUENT EVENTS |
December 31, | ||||||||||||||||
2015 | 2014 | December 31, | ||||||||||||||
As restated | 2017 | 2016 | ||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 139,339 | $ | 218,538 | $ | 157,014 | $ | 229,777 | ||||||||
Notes receivable from subsidiaries | 735,835 | 591,025 | 375,477 | 441,451 | ||||||||||||
Investments in subsidiaries | 778,080 | 796,389 | 985,476 | 912,163 | ||||||||||||
Investment in unconsolidated subsidiary | 7,170 | 4,002 | 8,196 | 7,700 | ||||||||||||
Other assets, net | 2,712 | 4,097 | 1,655 | 534 | ||||||||||||
Total assets | 1,663,136 | 1,614,051 | $ | 1,527,818 | $ | 1,591,625 | ||||||||||
Liabilities | ||||||||||||||||
Payable to related parties | 50 | 917 | $ | 223 | $ | 906 | ||||||||||
Payable to subsidiaries | 289,961 | 140,583 | 349,585 | 280,034 | ||||||||||||
Unsecured borrowings, net | 691,109 | 689,452 | 615,922 | 691,390 | ||||||||||||
Deferred tax liability, net | 13,675 | 15,951 | 3,739 | 1,946 | ||||||||||||
Accrued and other liabilities | 11,377 | 10,894 | 14,640 | 24,114 | ||||||||||||
Total liabilities | 1,006,172 | 857,797 | 984,109 | 998,390 | ||||||||||||
Shareholders' equity | 656,964 | 756,254 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 1,663,136 | $ | 1,614,051 | ||||||||||||
Shareholders’ equity | 543,709 | 593,235 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,527,818 | $ | 1,591,625 |
Years ended | ||||||||||||||||||||||||
2015 | 2014 | 2013 | Years ended | |||||||||||||||||||||
As restated | As restated | 2017 | 2016 | 2015 | ||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | $ | 17,065 | $ | 59,447 | $ | 52,980 | ||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 1,159 | 3,562 | 1,491 | |||||||||||||||||||||
Equity earnings (loss) from subsidiaries | $ | 35,208 | $ | (24,385 | ) | $ | 17,065 | |||||||||||||||||
Equity earnings from unconsolidated subsidiary | 496 | 530 | 1,159 | |||||||||||||||||||||
Intercompany management fee income | 15,053 | 16,921 | 15,780 | 12,124 | 8,866 | 15,053 | ||||||||||||||||||
Intercompany interest income | 48,077 | 22,394 | 1,407 | 34,068 | 44,394 | 48,077 | ||||||||||||||||||
Interest and other income | 224 | 215 | 185 | 809 | 410 | 224 | ||||||||||||||||||
Total revenues | 81,578 | 102,539 | 71,843 | 82,705 | 29,815 | 81,578 | ||||||||||||||||||
Expense | ||||||||||||||||||||||||
Interest expense | 48,013 | 28,089 | 1,887 | 45,970 | 48,013 | 48,013 | ||||||||||||||||||
Selling, general and administrative | 12,987 | 15,520 | 17,644 | 12,630 | 11,803 | 12,987 | ||||||||||||||||||
Loss on modification and extinguishment of debt | 19,655 | — | — | |||||||||||||||||||||
Total expenses | 61,000 | 43,609 | 19,531 | 78,255 | 59,816 | 61,000 | ||||||||||||||||||
Net income before provision for income taxes | 20,578 | 58,930 | 52,312 | |||||||||||||||||||||
Income tax benefit | (2,220 | ) | (1,254 | ) | (1,628 | ) | ||||||||||||||||||
Net income | $ | 22,798 | $ | 60,184 | $ | 53,940 | ||||||||||||||||||
Net income (loss) before provision (benefit) for income taxes | 4,450 | (30,001 | ) | 20,578 | ||||||||||||||||||||
Provision (benefit) for income taxes | 1,852 | (889 | ) | (2,220 | ) | |||||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | |||||||||||||||||
Weighted average number of shares: | ||||||||||||||||||||||||
Basic | 41,222,690 | 41,405,211 | 34,129,880 | 30,307,357 | 33,239,001 | 41,222,690 | ||||||||||||||||||
Diluted | 41,315,149 | 41,527,584 | 34,243,456 | 30,353,425 | 33,239,001 | 41,315,149 | ||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||
Basic | $ | 0.52 | $ | 1.42 | $ | 1.55 | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 | |||||||||||
Diluted | $ | 0.52 | $ | 1.42 | $ | 1.55 | $ | 0.09 | $ | (0.88 | ) | $ | 0.52 |
Years ended | ||||||||||||||||||||||||
2015 | 2014 | 2013 | Years ended | |||||||||||||||||||||
As restated | As restated | 2017 | 2016 | 2015 | ||||||||||||||||||||
Cash Flows from Operating Activities | ||||||||||||||||||||||||
Net Income | $ | 22,798 | $ | 60,184 | $ | 53,940 | ||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | (17,065 | ) | (59,447 | ) | (52,980 | ) | ||||||||||||||||||
Equity in earnings of unconsolidated subsidiary | (1,159 | ) | (3,562 | ) | (1,491 | ) | ||||||||||||||||||
Net income (loss) | $ | 2,598 | $ | (29,112 | ) | $ | 22,798 | |||||||||||||||||
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 | ) | ||||||||||||||||||
Deferred income taxes | (2,276 | ) | (2,004 | ) | (1,654 | ) | 1,852 | (12,139 | ) | (2,276 | ) | |||||||||||||
Share-based compensation | 195 | 30 | 3,177 | — | — | 195 | ||||||||||||||||||
Amortization of debt discount and others | 1,982 | 1,537 | 76 | |||||||||||||||||||||
Distributions from unconsolidated subsidiary | — | 5,501 | — | |||||||||||||||||||||
Amortization of debt discount and other | 1,931 | 1,982 | 1,982 | |||||||||||||||||||||
Loss on modification and extinguishment of debt | 19,655 | — | — | |||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||
Receivable from subsidiaries | 132,843 | 117,806 | 12,797 | |||||||||||||||||||||
Payable to subsidiaries | 6,144 | (162,229 | ) | 132,843 | ||||||||||||||||||||
Other assets | 1,060 | (1,672 | ) | 45 | (1,121 | ) | 476 | 1,060 | ||||||||||||||||
Payable to related parties | (867 | ) | (48 | ) | (1,435 | ) | (683 | ) | 856 | (867 | ) | |||||||||||||
Accrued and other liabilities | 483 | 7,211 | 670 | (9,478 | ) | 12,622 | 483 | |||||||||||||||||
Net cash flows provided by operating activities | 137,994 | 125,536 | 13,145 | |||||||||||||||||||||
Net cash flows provided by (used in) operating activities | (14,806 | ) | (163,689 | ) | 137,994 | |||||||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||||||
Capital contributions to subsidiaries | — | (5,058 | ) | (256,515 | ) | |||||||||||||||||||
Distributions received from subsidiaries | 53,500 | 1,925 | 6,000 | — | — | 53,500 | ||||||||||||||||||
Capital contributions to unconsolidated subsidiary | (2,009 | ) | — | — | — | — | (2,009 | ) | ||||||||||||||||
Distributions received from unconsolidated subsidiary | — | 1,132 | — | |||||||||||||||||||||
Notes receivable from subsidiaries | (650,083 | ) | (628,994 | ) | — | (48,335 | ) | (40,172 | ) | (650,083 | ) | |||||||||||||
Notes payable to subsidiaries | 505,273 | 94,101 | — | 144,718 | 334,556 | 505,273 | ||||||||||||||||||
Net cash flows used in investing activities | (93,319 | ) | (536,894 | ) | (250,515 | ) | ||||||||||||||||||
Net cash flows provided by (used in) investing activities | 96,383 | 294,384 | (93,319 | ) | ||||||||||||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | — | — | 172,595 | |||||||||||||||||||||
Proceeds from issuance of unsecured borrowings | — | 396,563 | 291,389 | 295,150 | — | — | ||||||||||||||||||
Repayment of unsecured borrowings | (375,000 | ) | — | — | ||||||||||||||||||||
Debt modification and extinguishment costs | (16,287 | ) | — | — | ||||||||||||||||||||
Debt issuance costs | — | (1,116 | ) | — | (917 | ) | — | — | ||||||||||||||||
Shares repurchased | (81,432 | ) | — | — | (57,286 | ) | (40,257 | ) | (81,432 | ) | ||||||||||||||
Dividends paid | (41,388 | ) | (41,392 | ) | (30,531 | ) | — | — | (41,388 | ) | ||||||||||||||
Dividend equivalents | (1,054 | ) | (1,426 | ) | (940 | ) | — | — | (1,054 | ) | ||||||||||||||
Net cash flows (used in) provided by financing activities | (123,874 | ) | 352,629 | 432,513 | ||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | (79,199 | ) | (58,729 | ) | 195,143 | |||||||||||||||||||
Cash and cash equivalents at beginning of year | 218,538 | 277,267 | 82,124 | |||||||||||||||||||||
Cash and cash equivalents at end of year | $ | 139,339 | $ | 218,538 | $ | 277,267 | ||||||||||||||||||
Net cash flows used in financing activities | (154,340 | ) | (40,257 | ) | (123,874 | ) | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (72,763 | ) | 90,438 | (79,199 | ) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 229,777 | 139,339 | 218,538 | |||||||||||||||||||||
Cash and cash equivalents at end of period | $ | 157,014 | $ | 229,777 | $ | 139,339 | ||||||||||||||||||
Supplemental Disclosure: | ||||||||||||||||||||||||
Cash paid during the year for: | ||||||||||||||||||||||||
Interest | $ | 46,723 | $ | 21,488 | $ | — | $ | 41,883 | $ | 46,032 | $ | 46,723 | ||||||||||||
Taxes | — | — | — | — | — | — | ||||||||||||||||||
Noncash Activities: | ||||||||||||||||||||||||
Noncash investing activities: | ||||||||||||||||||||||||
Capital contribution to subsidiaries | 17,246 | — | — | 109,391 | 207,340 | 17,246 | ||||||||||||||||||
Distributions paid to subsidiaries | 711 | — | — | |||||||||||||||||||||
Distributions from subsidiaries | 76,451 | 55,039 | 711 |
December 31, 2014 | ||||||||||||||||
As previously reported | Maintenance rights adjustments | Other adjustments | As restated | |||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 218,538 | $ | — | $ | — | $ | 218,538 | ||||||||
Notes receivable from subsidiaries | 591,025 | — | — | 591,025 | ||||||||||||
Investments in subsidiaries | 799,009 | 1,290 | (3,910 | ) | 796,389 | |||||||||||
Investment in unconsolidated subsidiary | 4,002 | — | — | 4,002 | ||||||||||||
Other assets, net | 4,097 | — | — | 4,097 | ||||||||||||
Total assets | $ | 1,616,671 | $ | 1,290 | $ | (3,910 | ) | $ | 1,614,051 | |||||||
Liabilities | ||||||||||||||||
Payable to related parties | $ | 917 | $ | — | $ | — | $ | 917 | ||||||||
Payable to subsidiaries | 140,583 | — | — | 140,583 | ||||||||||||
Unsecured borrowings, net | 689,452 | — | — | 689,452 | ||||||||||||
Deferred tax liability, net | 15,951 | — | — | 15,951 | ||||||||||||
Accrued and other liabilities | 10,894 | — | — | 10,894 | ||||||||||||
Total liabilities | 857,797 | — | — | 857,797 | ||||||||||||
Shareholders' equity | 758,874 | 1,290 | (3,910 | ) | 756,254 | |||||||||||
Total liabilities and shareholders' equity | $ | 1,616,671 | $ | 1,290 | $ | (3,910 | ) | $ | 1,614,051 |
Year Ended December 31, 2014 | ||||||||||||||||
As previously reported | Maintenance rights adjustments | Other adjustments | As restated | |||||||||||||
Revenues | ||||||||||||||||
Equity in earnings of subsidiaries | $ | 56,446 | $ | 3,157 | $ | (156 | ) | $ | 59,447 | |||||||
Equity in earnings from unconsolidated subsidiary | 2,456 | — | 1,106 | 3,562 | ||||||||||||
Intercompany management fee income | 16,921 | — | — | 16,921 | ||||||||||||
Intercompany interest income | 22,394 | — | — | 22,394 | ||||||||||||
Interest and other income | 215 | — | — | 215 | ||||||||||||
Total revenues | 98,432 | 3,157 | 950 | 102,539 | ||||||||||||
Expenses | ||||||||||||||||
Interest expense | 28,089 | — | — | 28,089 | ||||||||||||
Selling, general and administrative | 15,520 | — | — | 15,520 | ||||||||||||
Total expenses | 43,609 | — | — | 43,609 | ||||||||||||
Net income before provision for income taxes | 54,823 | 3,157 | 950 | 58,930 | ||||||||||||
Income tax benefit | (1,254 | ) | — | — | (1,254 | ) | ||||||||||
Net income | $ | 56,077 | $ | 3,157 | $ | 950 | $ | 60,184 | ||||||||
Weighted average number of shares: | ||||||||||||||||
Basic | 41,405,211 | — | — | 41,405,211 | ||||||||||||
Diluted | 41,527,584 | — | — | 41,527,584 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.32 | — | — | $ | 1.42 | ||||||||||
Diluted | $ | 1.32 | — | — | $ | 1.42 |
Year Ended December 31, 2013 | ||||||||||||||||
As previously reported | Maintenance rights adjustments | Other adjustments | As restated | |||||||||||||
Revenues | ||||||||||||||||
Equity in earnings of subsidiaries | $ | 51,136 | $ | 1,477 | $ | 367 | $ | 52,980 | ||||||||
Equity in earnings from unconsolidated subsidiary | 1,871 | — | (380 | ) | 1,491 | |||||||||||
Intercompany management fee income | 15,780 | — | — | 15,780 | ||||||||||||
Intercompany interest income | 1,407 | — | — | 1,407 | ||||||||||||
Interest and other income | 185 | — | — | 185 | ||||||||||||
Total revenues | 70,379 | 1,477 | (13 | ) | 71,843 | |||||||||||
Expenses | ||||||||||||||||
Interest expense | 1,887 | — | — | 1,887 | ||||||||||||
Selling, general and administrative | 17,644 | — | — | 17,644 | ||||||||||||
Total expenses | 19,531 | — | — | 19,531 | ||||||||||||
Net income before provision for income taxes | 50,848 | 1,477 | (13 | ) | 52,312 | |||||||||||
Income tax benefit | (1,628 | ) | — | — | (1,628 | ) | ||||||||||
Net income | $ | 52,476 | $ | 1,477 | $ | (13 | ) | $ | 53,940 | |||||||
Weighted average number of shares: | ||||||||||||||||
Basic | 34,129,880 | — | — | 34,129,880 | ||||||||||||
Diluted | 34,243,456 | — | — | 34,243,456 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 1.51 | — | — | $ | 1.55 | ||||||||||
Diluted | $ | 1.50 | — | — | $ | 1.55 |
Year Ended December 31, 2014 | ||||||||||||
As previously reported | Adjustments | As restated | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net Income | $ | 56,077 | $ | 4,107 | $ | 60,184 | ||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||
Equity in earnings of subsidiaries | (56,446 | ) | (3,001 | ) | (59,447 | ) | ||||||
Equity in earnings of unconsolidated subsidiary | (2,456 | ) | (1,106 | ) | (3,562 | ) | ||||||
Deferred income taxes | (2,004 | ) | — | (2,004 | ) | |||||||
Share-based compensation | 30 | — | 30 | |||||||||
Amortization of debt discount and others | 1,537 | — | 1,537 | |||||||||
Distributions from unconsolidated subsidiary | 5,501 | — | 5,501 | |||||||||
Changes in operating assets and liabilities: | — | |||||||||||
Receivable from subsidiaries | 117,806 | — | 117,806 | |||||||||
Other assets | (1,672 | ) | — | (1,672 | ) | |||||||
Payable to related parties | (48 | ) | — | (48 | ) | |||||||
Accrued and other liabilities | 7,211 | — | 7,211 | |||||||||
Net cash flows provided by operating activities | 125,536 | — | 125,536 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Capital contributions to subsidiaries | (5,058 | ) | — | (5,058 | ) | |||||||
Distributions received from subsidiaries | 1,925 | — | 1,925 | |||||||||
Capital contributions to unconsolidated subsidiaries | — | — | — | |||||||||
Distributions received from unconsolidated subsidiaries | 1,132 | — | 1,132 | |||||||||
Notes receivable from subsidiaries | (628,994 | ) | — | (628,994 | ) | |||||||
Notes payable to subsidiaries | 94,101 | — | 94,101 | |||||||||
Net cash flows used in investing activities | (536,894 | ) | — | (536,894 | ) | |||||||
Cash Flows from Financing Activities | ||||||||||||
Proceeds from issuance of shares, net of fees paid | — | — | — | |||||||||
Proceeds from issuance of unsecured borrowings | 396,563 | — | 396,563 | |||||||||
Debt issuance costs | (1,116 | ) | — | (1,116 | ) | |||||||
Shares repurchased | — | — | — | |||||||||
Dividends paid | (41,392 | ) | — | (41,392 | ) | |||||||
Dividend equivalents | (1,426 | ) | — | (1,426 | ) | |||||||
Net cash flows provided by financing activities | 352,629 | — | 352,629 | |||||||||
Net decrease in cash | (58,729 | ) | — | (58,729 | ) | |||||||
Cash at beginning of period | 277,267 | — | 277,267 | |||||||||
Cash at end of period | $ | 218,538 | $ | — | $ | 218,538 | ||||||
Supplemental Disclosure: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | 21,488 | $ | — | $ | 21,488 | ||||||
Taxes | — | — | — |
Year Ended December 31, 2013 | ||||||||||||
As previously reported | Adjustments | As restated | ||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net Income | $ | 52,476 | $ | 1,464 | $ | 53,940 | ||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||||||||||||
Equity in earnings of subsidiaries | (51,136 | ) | (1,844 | ) | (52,980 | ) | ||||||
Equity in earnings of unconsolidated subsidiary | (1,871 | ) | 380 | (1,491 | ) | |||||||
Deferred income taxes | (1,654 | ) | — | (1,654 | ) | |||||||
Share-based compensation | 3,177 | — | 3,177 | |||||||||
Amortization of debt discount and others | 76 | — | 76 | |||||||||
Distributions from unconsolidated subsidiary | — | — | — | |||||||||
Changes in operating assets and liabilities: | — | |||||||||||
Receivable from subsidiaries | 12,797 | — | 12,797 | |||||||||
Other assets | 45 | — | 45 | |||||||||
Payable to related parties | (1,435 | ) | — | (1,435 | ) | |||||||
Accrued and other liabilities | 670 | — | 670 | |||||||||
Net cash flows provided by operating activities | 13,145 | — | 13,145 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Capital contributions to subsidiaries | (256,515 | ) | — | (256,515 | ) | |||||||
Distributions received from subsidiaries | 6,000 | — | 6,000 | |||||||||
Capital contributions to unconsolidated subsidiaries | — | — | — | |||||||||
Distributions received from unconsolidated subsidiaries | — | — | — | |||||||||
Notes receivable from subsidiaries | — | — | — | |||||||||
Notes payable to subsidiaries | — | — | — | |||||||||
Net cash flows used in investing activities | (250,515 | ) | — | (250,515 | ) | |||||||
Cash Flows from Financing Activities | ||||||||||||
Proceeds from issuance of shares, net of fees paid | 172,595 | — | 172,595 | |||||||||
Proceeds from issuance of unsecured borrowings | 291,389 | — | 291,389 | |||||||||
Debt issuance costs | — | — | — | |||||||||
Shares repurchased | — | — | — | |||||||||
Dividends paid | (30,531 | ) | — | (30,531 | ) | |||||||
Dividend equivalents | (940 | ) | — | (940 | ) | |||||||
Net cash flows provided by financing activities | 432,513 | — | 432,513 | |||||||||
Net increase in cash | 195,143 | — | 195,143 | |||||||||
Cash at beginning of period | 82,124 | — | 82,124 | |||||||||
Cash at end of period | $ | 277,267 | $ | — | $ | 277,267 | ||||||
Supplemental Disclosure: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Interest | $ | — | $ | — | $ | — | ||||||
Taxes | — | — | — |
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 | ||
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 Amendment dated December 28, 2012 by and among Fly Leasing Limited, Summit Aviation Partners LLC and such persons identified |
Exhibit Number | Description of Exhibit | |
Amended and Restated Fly Leasing Limited Management Agreement dated as of December 28, 2012, between Fly Leasing Limited and Fly Leasing Management Co. Limited.(8) |
| ||
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) |
Exhibit Number | Description of Exhibit | |
Servicing Agreement dated as of December 8, 2017, among BBAM US LP, BBAM Aviation Services Limited and Magellan Acquisition Limited. | ||
Guaranty [Fly 2017A Term Loan] dated December 8, 2017 by Fly Leasing Limited. | ||
List of the | ||
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) |
Exhibit Number | Description of Exhibit | |
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. | ||
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. | ||
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. | ||
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 Trustee | ||
10.15 | 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. | |
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 | ||
101 | The following materials from the |
(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. |
Fly Leasing Limited | ||
By: | /s/ Colm Barrington | |
Colm Barrington | ||
Chief Executive Officer and Director | ||
Dated: March 13, 2018 |