Aircastle consistent with returning value to shareholders, reports no near-term debt maturities

By Lisa Kerner

Charlotte, N.C., April 11 - Aircastle Ltd. has been employing a "balanced approach" to capital allocation for the last three years, said chief financial officer Mike Inglese during his presentation at the company's investor and analyst event on Thursday.

"Since the beginning of 2009, we've been very focused on adding incremental assets and pruning older assets to increase the ROE of the business, and we've invested $1.6 billion, net of asset sales, which is about $1 billion gross, of flight equipment in that time frame," Inglese said.

Aircastle has also been a consistent dividend payer, paying $121 million to shareholders in three years.

Since its initial public offering in August of 2006 through the first quarter of 2013, the company has declared dividends for 27 consecutive quarters.

Inglese also highlighted Aircastle's commitment to share repurchases, noting the $30 million remaining under the current authorization.

"We repurchased 11.7 million shares at an average cost of $11.87 since the beginning of 2011," he said.

Comfortably conservative

According to Inglese, Aircastle is comfortable operating with its conservative capital structure.

"We have no significant debt maturities until 2017 (and) we don't have a forward order book."

Aircastle's unsecured debt to total debt has increased to 49%, from 15% at the end of 2011, and the company had $2.1 billion of unencumbered flight aircraft equipment representing 72 aircraft at the end of 2012, said Inglese.

Also at year-end, Aircastle reported unrestricted cash of over $618 million and $150 million undrawn under its revolving credit facility.

"Our net debt to equity ratio is 2.1 times, and net debt to total cap is just under 60%," Inglese said.

Aircastle's 9¾% notes, its highest coupon notes, are callable in August of next year, according to the CFO.

Based in Stamford, Conn., Aircastle acquires, leases and sells high-utility commercial jet aircraft.

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