Carlyle Aviation to acquire Fly Leasing in deal with enterprise value of about $2.36 billion

Carlyle Aviation said Monday it has reached an agreement to acquire Dublin-based Fly Leasing Ltd.
FLY,
-2.50%

in a deal with an enterprise value of about $2.36 billion. Carlyle Aviation, the commercial aviation investment and servicing arm within The Carlyle Group’s $56 billion Global Credit platform, will pay $17.05 a share in cash, equal to a premium of about 29% over FLY’s closing price Friday, and a 43% premium over the volume-weighted average share price during the last 30 trading days. The deal is expected to close in the third quarter. “This transaction represents strong value for FLY shareholders at a time when airlines are facing an extremely difficult environment and smaller aircraft lessors are disadvantaged in the debt markets,” said Fly Chief Executive Colm Barrington in a statement. Fly shares soared 23.7% premarket on the news, and are up 35% in the year to date, while the S&p 500
SPX,
1.66%

has gained 6%.