What Happened?

Shares of aircraft leasing company FTAI Aviation (NASDAQ:FTAI) jumped 7.8% in the afternoon session after the company announced its Strategic Capital Initiative (SCI), initially announced late 2024, locked in a $2.5 billion asset-level debt financing deal. The funding comes from ATLAS SP Partners, backed by Apollo funds, along with Deutsche Bank AG's New York branch. With this financing, SCI plans to invest over $4 billion in on-lease 737NG and A320ceo aircraft. The market is excited about the company's diversifying asset base. To recap, SCI is designed to help FTAI grow its aircraft portfolio without heavy upfront capital expenditures. It should also drive a steady revenue stream by driving demand for FTAI's Maintenance, Repair, and Exchange (MRE) services.

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What The Market Is Telling Us

FTAI Aviation’s shares are extremely volatile and have had 38 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

The previous big move we wrote about was 6 days ago when the stock gained 19.5% on the news that the company's audit committee, with support from independent legal and forensic accounting advisors, concluded its review of the January 2025 short report by Muddy Waters and found the allegations "without merit.". The company expects to file its Form 10-K (annual report) on schedule, easing concerns that the report might be delayed. Paul R. Goodwin, Chair of the Audit Committee, commented, "After a thorough and comprehensive review with the support of our independent legal and forensic accounting advisors, we have determined that the assertions made in the short seller reports are unsupported and have no merit. The Audit Committee and full Board continue to take seriously our responsibility to FTAI shareholders to maintain high standards of corporate governance and internal compliance and financial reporting controls, as well as transparent and timely disclosure."

FTAI Aviation is down 1.1% since the beginning of the year, and at $142.86 per share, it is trading 18.3% below its 52-week high of $174.96 from November 2024. Investors who bought $1,000 worth of FTAI Aviation’s shares 5 years ago would now be looking at an investment worth $7,559.

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