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Fly Leasing shares fall on plans to sell new stock

NEW YORK (AP) -- Shares of Fly Leasing Ltd. fell Friday, a day after the Irish aircraft leasing company announced plans to raise about $150 million after expenses in a stock offering in the United States.

THE SPARK: The company said Thursday it plans to sell 11.4 million American Depositary Shares for $14 per share in an underwritten public offering.

Fly also plans to grant the offering's underwriters an option to sell up to an additional 1.7 million shares if conditions warrant.

It expects to use the proceeds after expenses for general corporate purposes, including buying aircraft.

THE BIG PICTURE: Shares holders generally don't like stock offerings, because they dilute the value of existing shares.

THE SHARES: Down 49 cents, or 3.4 percent, to $14.26 in afternoon trading, after dropping as low as $14.16 earlier in the day. Over the past 52 weeks, the company's shares have traded between $11.06 and $17.37.