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Carlyle Aviation to Acquire Fly Leasing – Stock Surges 27%

Updated: 29 Mar 2021

Shares of Fly Leasing Limited (NYSE: FLY) are surging on Monday after announcing that it will be acquired by an affiliate of Carlyle Aviation Partners for $17.05 per share.

The deal will see Carlyle Aviation pay a total of approximately $520 million for the aircraft leasing company. The total enterprise value of the transaction is around $2.36 billion.

Ireland based Fly has a portfolio of 84 aircraft and seven engines on lease to 37 airlines in 22 countries.

The per-share price paid for the company represents a premium of approximately 29% to FLY's closing price on March 26, 2021, and a 43% premium to the volume-weighted average share price during the last 30 trading days.

Fly Leasing’s share price has gained 27% so far on Monday, climbing to $16.87.

FLY Leasing price chart
Source: IG

The transaction is expected to close in the third quarter of 2021.

“This transaction represents strong value for FLY shareholders at a time when airlines are facing an extremely difficult environment and smaller aircraft lessors are disadvantaged in the debt markets,” said Colm Barrington, CEO of FLY. ”

“After a thorough review and evaluation of its options, FLY's Board of Directors enthusiastically recommends this transaction to its shareholders,” he added.

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