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Babcock & Brown Air Repurchases $100 Million of Debt

Posted on: Monday, 16 March 2009, 14:00 CDT

DUBLIN, March 16 /PRNewswire-FirstCall/ -- Babcock & Brown Air Limited (NYSE: FLY) ("B&B Air"), a global lessor of modern, fuel-efficient commercial jet aircraft, today announced that it has agreed to repurchase $100 million principal amount of its securitization notes for $48 million in a privately negotiated transaction. The transaction will be funded from the Company's available cash.

"Repurchasing our debt at a discount adds significant value to our shareholders by increasing net asset value, facilitating the refinancing of the entire portfolio and by deleveraging the Company to a more conservative loan-to-value ratio," said Colm Barrington, CEO of B&B Air. "Additionally, the repurchase will improve profitability through interest expense savings, particularly given that the purchase price represents a deep discount to par value. The transaction is a testament to the strong cash flows the portfolio continues to generate despite turbulent market conditions. Management will continue to evaluate opportunities to enhance shareholder value throughout the capital structure, including future debt and equity repurchases."

B&B Air recently reported its 2008 financial results, which showed that in its first full year as a listed company it increased its unrestricted cash to $56.8 million at December 31, 2008, after returning $73.7 million to shareholders through dividends and share repurchases. The company continues to generate strong cash flows from its portfolio of modern, fuel efficient aircraft, leased to 36 airlines in 19 countries. At the end of February 2009, before the debt repurchase transaction was completed, the Company's unrestricted cash was $72 million.

About Babcock & Brown Air Limited

Babcock & Brown Air ("B&B Air") 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. B&B Air is managed and serviced by Babcock & Brown Aircraft Management ("BBAM"), the world's fourth largest aircraft lessor. For more information about B&B Air, visit our website at www.babcockbrownair.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "intends," "anticipates," "plans," "believes," "seeks," "estimates," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for B&B Air's future business and financial performance. Forward-looking statements are based on management's current expectations and assumptions, which are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially due to global political, economic, business, competitive, market, regulatory and other factors and risks. B&B Air expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise.

Matt Dallas Babcock & Brown +1 212-796-3918 matt.dallas@babcockbrown.com

SOURCE Babcock & Brown Air Limited

Source: PR Newswire

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