Greenwich Kahala Aviation postpones IPO: source

NEW YORK (Reuters) – Greenwich Kahala Aviation Ltd indefinitely postponed its initial public offering on Thursday, citing market conditions, an underwriter said.

The Irish aircraft lessor and trader planned to sell 15 million shares in the form of American depositary shares (ADS) for $12 each and raise up to $180 million.

Greenwich Kahala has yet to generate revenue and focuses on buying, lending and trading used aircraft. It owns one passenger Boeing 757 that is on lease to a major U.S. airline.

The company told U.S. regulators in a filing it planned to use net proceeds from the IPO to buy and lease commercial aircraft, including narrowbody jets, turboprop aircraft and regional jets. It also said it had letter agreements to acquire two more Boeing 757 aircraft after the IPO.

Greenwich Kahala would have been the first aviation company to float on the U.S. markets since Babcock & Brown Air, another Irish company later renamed Fly Leasing Ltd (FLY.N: Quote, Profile, Research), went public in 2007, according to Ipreo, which provides capital markets data and analytic services.

Greenwich Kahala had been expected to begin trading on the New York Stock Exchange on Friday under the symbol “GKH.”

Underwriters on the offering were to have been FBR Capital Markets and Wells Fargo Securities.

(Reporting by Alina Selyukh; Editing by Tim Dobbyn and Richard Chang)