So, Onex is buying 50% of BBAM including FLY's 15%.
On the the one side, Onex has made a lot of investments into the aerospace industry, so obviously seems some good value here (it dopes not sound like a distressed sale), so perhaps they feel they can better grow things outside FLY, so perhaps it was just a good time to sell for FLY.
On the other side, Colin has made many previous comments about the strength FLYgains by owning part of BBAM, so I wonder if these go away. Plus, Onex will likely have Noex's interests in the aircraft market ahead of FLY's.
Will be interesting to see how the market reacts today. Best case is this is a precurser for Onex making a run for FLY.
This gets FLY's leverage closer to where they want and sets up for another dividend increase, possibly next year. I don't believe the market was giving them any credit at all for the BBAM investment so personally believe it was a smart move to cash the asset out and put it where the analysts' concerns are (the debt).
Very interesting news. Curious too as to what this means long term. In the short term, FLY has sold an asset which is on the #$%$ at $16m for $50m. Lots of cash now on hand. Probably too late in the year for a special dividend???
Structure of deal is confusing. Why sell stock at below market value, at a price Fly was buying? Why not get the same
amount of $ by increasing stock price and reducing sales price and taxable profit.? Is management getting a kicker on this deal?