#USA #Dania Beach #Next Level Aviation #Turning Rock Partners #aircraft materials

Next Level Aviation® Takes a Strategic Step Forward

In a significant financial maneuver, Next Level Aviation® (NLA), a notable figure in the global distribution of used service materials (USM) for commercial aircraft, has announced the redemption of preferred shares held by Turning Rock Partners (TRP). This move is set to bolster NLA's independence and pave the way for its growth trajectory in the aircraft service industry.

Founded in 2013, NLA, under the leadership of CEO Jack Gordon, specializes in storing USM crucial for Boeing and Airbus aircraft. The company has dedicated its resources primarily to the Boeing 737 and Airbus A320 families, which make up a substantial portion of the global commercial fleet. As NLA continues to expand its operations, this redemption might signal a shift towards a more autonomous future for the company.

Financial Agreement Details

The agreement entails NLA fully redeeming the preferred investment from TRP, an arrangement that first came into effect in 2019. In a statement from the president of NLA, Jack Gordon noted that they were pleased to finalize this redemption, expressing gratitude for the support received from TRP. Over the past five years, TRP has played a pivotal role, especially during the turbulent times brought about by the COVID-19 pandemic, which significantly impacted the aviation sector.

In December 2024, NLA made its first substantial payment towards this redemption, marking the beginning of a structured exit from its financial partnership with TRP. The decision to redeem the shares aligns with NLA's long-term strategy to restore full ownership to its founders, allowing them to evaluate future capital needs without external influence.

Acknowledgments and Future Plans

Gordon also took the opportunity to thank PNC Bank for providing the necessary asset-based lending flexibility that facilitated this management-led refinancing. With the completion of this transaction, 100% ownership will revert to the original founders, enabling them to directly steer the company towards its ambitious future goals.

On the other side, TRP's Chief Operating Officer, John Hamilton, acknowledged NLA's resilience and agility, commending the firm for its achievements amidst challenging operational conditions. He expressed confidence in NLA's capacity to thrive and adapt, wishing them success as they embark on this new chapter.

As NLA prepares for a future without TRP's involvement, the company is setting its sights on attracting a new preferred capital partner. This step is crucial as it looks to enhance its operational capabilities while expanding its market share in the aerospace sector. The emphasis on refining its capital structure reflects NLA's commitment to maintaining robust financial health and agility in a competitive market.

Conclusion

The redemption of Turning Rock Partners’ preferred shares by Next Level Aviation® marks a transformative moment in the company's history. With a renewed focus on independence and a strong commitment to supporting the aviation industry, NLA is well-positioned to address future challenges and capitalize on emerging opportunities in the aerospace market. The leadership team, backed by its dedicated workforce, is primed to navigate the evolving landscape of aircraft service materials and continue to deliver value to its customers worldwide. This strategic decision not only underscores their operational stability but also sets the stage for long-term growth and innovation within the aviation sector.