Babcock & Brown Air acquires 5 jets
NEW YORK --Babcock & Brown Air Ltd., which acquires and leases commercial jet aircraft, said Thursday it has purchased five additional aircraft for about $265 million, increasing its portfolio to 59 jets.
Babcock & Brown Air, which went public with an initial public offering in September 2007, funded the acquisitions through its five-year, $1.1 billion credit facility. The aircraft are on lease to Virgin America, Air Berlin's LTU, Icelandair and KLM.
In December 2007, the company acquired 7 jets for $250 million.
The weighted average age of the newly acquired aircraft is 5 years and the weighted average remaining lease terms are 6.9 years. As of April 1, the weighted average age of B&B Air's portfolio will be 6.2 years and the weighted average remaining lease terms will be 6.4 years.
Fly shares dropped 46 cents, or 2.9 percent, to $15.30 in afternoon trading, which is 34 percent below its initial public offering price of $23. The stock has traded between $15 and $23.90 since the IPO in September. 