Onex to Acquire a 50% Stake in BBAM for $165 Million and to Invest $25 Million in FLY in Partnership with BBAM Management Team
December 03 2012 - 07:00AM
Marketwired
All amounts in U.S. dollars unless otherwise stated
Onex Corporation ("Onex") (TSX:OCX) today announced that it has
agreed to acquire a 50% interest in BBAM, the world's third largest
manager of commercial jet aircraft, for $165 million. The
transaction is expected to close by the end of 2012 subject to
certain conditions and approvals.
Onex will acquire a 35% interest in BBAM from BBAM's management
team and a 15% interest in BBAM from FLY Leasing Limited ("FLY")
(NYSE:FLY), a leading global lessor of commercial jet aircraft
managed by BBAM with 110 aircraft on long-term operating leases to
53 airlines in 29 countries.
Onex and BBAM management will also invest a further $25 million
in newly issued shares of FLY at $11.41 per share. In total, FLY
will receive approximately $75 million in pre-tax gross proceeds
from the sale of its interest in BBAM and the issuance of new FLY
shares.
"We're very pleased to be partnering with Onex given its track
record and experience in our industry," commented Steve Zissis,
Chief Executive Officer of BBAM. "With Onex' backing, we intend to
strengthen our market presence, including in particular our unique
26-year partnership with Nomura Babcock & Brown in Japan, while
at the same time accelerating growth at FLY."
Colm Barrington, Chief Executive Officer of FLY, said, "These
transactions will generate both significant unrestricted cash for
new investments and produce gains on the sale of FLY's investment
in BBAM."
"BBAM is a unique platform in a market we followed closely for
several years. We see great opportunity ahead with Steve and his
team at BBAM," said Tawfiq Popatia, an Onex Principal.
About Onex
With offices in Toronto, New York and London, Onex is one of the
oldest and most successful private equity firms. Onex acquires and
builds high-quality businesses in partnership with talented
management teams. The Company has approximately $14 billion of
assets under management, including $4.8 billion of proprietary
capital, in private equity, credit securities and real estate. Onex
invests its proprietary capital directly and as a substantial
limited partner in its Funds.
Onex' businesses have assets of $39 billion, generate annual
revenues of $34 billion and employ approximately 235,000 people
worldwide. Onex shares trade on the Toronto Stock Exchange under
the stock symbol OCX. For more information on Onex, visit its
website at www.onex.com. The Company's security filings can also be
accessed at www.sedar.com.
About BBAM
BBAM is a leading player in commercial aircraft leasing,
financing and management providing over 200 airline customers in
more than 50 countries with fleet and financing solutions over its
20+ year history. In addition, BBAM provides asset management
services to leasing companies, aviation investors and financial
institutions covering more than 450 aircraft valued in excess of
$13 billion. For more information about BBAM, please visit its
website at www.bbam.com.
About FLY
FLY is a leading global aircraft lessor. FLY acquires and leases
modern, high-demand and fuel-efficient commercial jet aircraft
under multi-year operating lease contracts to a diverse group of
airlines throughout the world. For more information about FLY,
please visit its website at www.flyleasing.com.
Forward-Looking Statements
This news release may contain forward-looking statements that
are based on management's current expectations and are subject to
known and unknown uncertainties and risks, which could cause actual
results to differ materially from those contemplated or implied by
such forward-looking statements. Onex, BBAM and FLY are under no
obligation to update any forward-looking statements contained
herein should material facts change due to new information, future
events or otherwise.
Contacts: Onex Corporation Emma Thompson Vice President,
Investor Relations 416.362.7711 www.onex.com Contacts: FLY Leasing
Limited Matt Dallas Investor Relations 203.769.5916
www.flyleasing.com