High Hopes: Global Jet Capital closes billion dollar round
Global Jet Capital, the business aviation financier, has closed its second securitization round of 2018, pulling in near $674 million with its BJETS 2018-2 asset-backed security (ABS) offering. Before closing, the security was on the market for less than a week, attracting a variety of investors according to the company.
"This is a continuation of the development of the corporate jet asset class for the ABS market, which started with the issuance of BJETS 2018-1, the first ABS capital markets financing backed exclusively by business jet operating leases and loans" detailed Global Jet Capital CEO, Shawn Vick.
"The transaction generated strong demand from a diverse investor base at tighter overall yields than BJETS 2018-1 despite widening benchmarks, reflecting growing support for the company’s strategy and performance."
In addition to this offering, the company increased its possibilities with a new $900 million, five-year revolving credit facility backed by Deutsche Bank, Bank of America and Morgan Stanley, pulling its total securitized assets to over $1.5 billion. This comes as demand for business jets in the smaller and VVIP sectors is proving to be exceptionally strong.
Founded in 2014 by Vick and Bill Boisture, after the pair helped complete the sale of Hawker Beechcraft to Textron (Cessna's parent company), the company quickly jumpstarted its lending business backed by GSO Capital (part of Blackstone). Part of this growth came from their acquisition of GE's aircraft leasing business in 2016, pushing its fleet to just under 300 aircrafts.