FTAI Aviation terminates management and advisory agreement

FTAI Aviation announced yesterday it has entered into definitive agreements providing for the internalization of the company’s management operations. Under the Internalization Agreement, the company and FIG LLC have terminated the Management and Advisory Agreement, dated July 31, 2022, and the Services and Profit Sharing Agreement, dated November 10, 2022, effective as of May 28, 2024. In connection with the termination of the Management Agreement, the company has agreed to (i) pay the Manager $150M in cash; (ii) pay the Manager all accrued but not yet paid compensation and reimbursable expenses due under the Management Agreement and/or the Services and Profit Sharing Agreement, as well as certain other expenses; and (iii) issue to the Manager 1,866,949 ordinary shares of the company. As a result of the termination of the Management Agreement, and subject to an agreed upon transition, FTAI has ceased to be externally managed and now operates as an internally managed company. The company estimates that the internalization will result in approximately $30M of initial annualized cost savings, rising significantly each year. “The internalization of FTAI’s management reflects the confidence in our team’s capabilities and our vision for long-term growth and success. This agreement creates immediate cost savings, value for our shareholders and positions FTAI to fully benefit from the tremendous potential we see ahead. We look forward to an exciting future,” said Joe Adams, Chairman of the Board and Chief Executive Officer.