FTAI Aviation jumps after $2.5B asset-level debt financing commitment

FTAI Aviation (FTAI) shares advanced over 6% on Wednesday after the firm announced its Strategic Capital Initiative or SCI has obtained a commitment for $2.5B of asset-level debt financing led by global investment firm ATLAS SP Partners or ATLAS SP, the structured products business majority owned by Apollo funds, and Deutsche Bank AG, New York Branch. FTAI believes this debt financing will provide the SCI the ability to deploy $4.0+ billion of total capital into on-lease 737NG and A320ceo aircraft while allowing FTAI to maintain an asset-light business model. All engines owned by the SCI will be powered exclusively via engine and module exchanges with FTAI’s Maintenance, Repair and Exchange, MRE, business. “We are thrilled that our Strategic Capital Initiative has secured this financing commitment,” said Joseph P. Adams, CEO and Chairman of FTAI. “We believe this will allow the SCI to be one of the largest investors focused on mid-life, on-lease aircraft and we are grateful for the support of SCI capital partners and lenders, whose confidence in our business affirms and amplifies our strong momentum.” Mr. Adams continued, “This is an exciting time for FTAI as our MRE offering continues to penetrate the market and transform the way asset owners think about engine maintenance. With a $22B total addressable market and only 5% market share today…”