Intrepid Aviation Gets Closer to IPO

Intrepid Aviation has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No pricing details were given in the filing. The company intends to list on the New York Stock Exchange under the symbol INTR.

The underwriters for the offering are Goldman Sachs, Deutsche Bank, Jefferies, RBC Capital and Credit Agricole CIB.

This global leasing company acquires and leases passenger aircraft to a diverse group of airlines throughout the world. Intrepid’s strategy is to firmly establish it as a leading aircraft lessor of primarily, though not exclusively, young, modern, fuel-efficient twin-engine wide-body passenger aircraft with long-term leases to well-established airlines, while seeking to maximize long-term earnings growth and returns through the economic cycle.

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The company believes its portfolio that consists mainly of wide-body aircraft will allow it to meet the needs of airlines’ growing preference for larger gauge aircraft due to increasing demand for air travel. Intrepid believes that it is the only aircraft lessor primarily focused on acquiring and leasing twin-engine wide-body passenger aircraft, which it believes is a relatively less competitive market segment that has substantial latent demand.

The company also intends to expand its fleet mix by acquiring select narrow-body passenger aircraft that it expects to have long useful lives and that are currently in widespread use and in-demand by airlines, while still maintaining a greater focus on acquiring wide-body aircraft.

In the filing the company said:

Our owned and committed portfolio includes popular twin-engine widebody passenger aircraft such as the Airbus A330-300, Airbus A330-200, Boeing 777-300ER and Boeing 787-8 Dreamliner, as well as the popular Airbus A321 narrowbody passenger aircraft. As of June 30, 2016, we owned 28 aircraft. Our owned aircraft as of June 30, 2016 have an average age of 2.9 years and our aircraft on lease have an average remaining lease term of 8.5 years.

The company intends to use the net proceeds from this offering to continue to purchase aircraft currently on order with Boeing and Airbus, as well as for general corporate purposes to support continued growth.

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