FLY Leasing announced that it has entered into an agreement to amend and extend its BOS Facility. On September 30, the facility had a balance of $209M secured by nine aircraft. The amended facility will provide loans to FLY subsidiaries secured by seven aircraft, with six loans maturing in seven years and one in six years. The facility will be guaranteed by FLY. The two remaining aircraft are expected to be sold in 1Q14. In connection with the transaction, the lenders will extinguish approximately $35M of debt and FLY will contribute approximately $20M of unrestricted cash to repay debt. The new facility will have a balance at closing of approximately $127M. The interest rate on the amended facility will be LIBOR plus 2.5%, a reduction from the interest rate on the current facility. The amendment is expected to close on or about November 19, subject to customary closing conditions. As a result of the amendment, FLY anticipates recognizing a gain on debt extinguishment of more than $20M in Q4. FLY also anticipates that it will recognize a further gain on debt extinguishment of more than $3M when the remaining two aircraft are sold, which is expected to be in 1Q14.