The Onex CEO is the highest paid Canadian CEO. Element guy is #5. Think maybe they travel in the same circles?
Then there's Onex, another Toronto enterprise, that bought 50% of BBAM in Dec. 2012 and invested $75M in FLY.
It's weird. Clearly people are arbitraging the equity of the acquirer against the acquiree, but nothing announced. I also couldn't get FLY investor relations to say anything. Did someone make a mistake leaking this to an analyst, or the press?
How are you counting? Also, the weighted average age of the total 49-aircraft deal that ECAF is doing is 6.7 years. How many fifteen-year old planes can that be? or do their values just get down-weighted so much compared to new planes that they don't make a big enough fraction of the weighted average to matter?
You may have seen this ... excerpt from an article summarizing the transaction. Pretty sloppy writing, so I'd take it with a grain of salt for now.
If this deal goes ahead, analysts suggest that the sale of the aircraft would improve FLY Leasing’s (if the company is assumed to be one of the BBAM affiliates mentioned in the presale reports from S&P and Fitch, which Wells Fargo analysts Gary S. Liebowitz, believes is the case) book value/share and reduce its aircraft remarketing risk, says Liebowitz. He assumes the ECAF fleet may include around $0.7B of FLY aircraft and that the sale of that fleet could “generate a book gain of about $75M – i.e., adding around $1.50 to book value per share. Also, we believe that if a large portion of FLY’s fleet is sold at a premium to book value, the stock’s current P/B multiple (a group-low 0.82x) becomes even more difficult to justify”.
What U.S. based lessor? There aren't any meaningful U.S. based lessors to my knowledge. Because nobody would establish an airline leasing company in the world's highest tax jurisdiction.
and his headquartered north of the border. Check out their website-no news. It seems like the pre-sale information was intentional, at least in credit channels, but I wonder why none of the players announced anything. Am I wrong?
From what I read, they don't only invest in aircraft. They also have a railcar business which sounds similar - i.e. they buy railcars with securitized debt and then lease them out to railroads.
Not exactly how I read it. BBAM "has arranged" a pre-sale, not FLY. Whether FLY's aircraft are included in the possible securitization is speculative imo. Still, a deal appears to be in flux. Best scenario would be if two players emerge.
It is hard to reconcile this news with the much discussed objective of growing the fleet by 15% this year. Hopefully all will be revealed in the next few days.
Good find. I see an article in aviation news, now that you gave me the search terms. Can't find anything additional, however. I may ask investor relations later.