BOCA RATON, Fla.--(BUSINESS WIRE)--Global Jet Capital, a global leader in financial solutions for business aircraft, announced today the closing of its BJETS 2018-2 securitization, raising approximately $674 million. BJETS 2018-2, is the second ABS offering that Global Jet Capital has closed in the last four months, bringing total assets securitized to over $1.5 billion.
BJETS 2018-2 contains three tranches of notes: a $550 million Class A tranche, rated A by Kroll; a $82 million Class B tranche, rated BBB by Kroll; and a $41 million Class C tranche, rated BB by Kroll. The transaction, which was in the market for less than a week, was oversubscribed by more than two times, attracting orders from a wide variety of investors.
Deutsche Bank Securities was the Lead Structuring Agent and Lead Bookrunner for the transaction. BofA Merrill Lynch, Citigroup and Morgan Stanley were Joint Structuring Agents and Joint Bookrunners for the BJETS 2018-2 securitization. Global Jet Capital, Inc. will continue to service the assets.
In conjunction with closing the BJETS 2018-2 securitization, the Company completed a new $900 million, 5-year senior secured warehouse credit facility (with a revolving feature) with Deutsche Bank AG, Bank of America, Citibank and Morgan Stanley Bank.
Shawn Vick, CEO of Global Jet Capital, stated, “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. 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.
“We appreciate the support of our lenders and the confidence that their commitment to the new credit facility reflects in our business.”
Global Jet Capital plans to continue to use the ABS market as an integral part of its funding strategy in the future.
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Global Jet Capital
With over $2.0 billion in assets under management, Global Jet Capital provides financing solutions for the business aircraft market. The Company is capitalized by world-class private investors with expertise in the global aviation industry: The Carlyle Group, FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit, and AE Industrial Partners. The Global Jet Capital management team has served the business aircraft industry for a combined 200-plus years and has completed over 3,500 aircraft transactions. The Company has the expertise, financial strength, industry relationships and infrastructure necessary to offer a variety of flexible financing solutions at the speed the market requires. Visit www.globaljetcapital.com to learn more.
The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $201 billion of assets under management across 324 investment vehicles as of March 31, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,575 people in 31 offices across six continents. Visit www.carlyle.com to learn more.
FS Investments/KKR
FS/KKR Advisor, LLC (FS/KKR) is a partnership between FS Investments and KKR Credit that serves as the investment adviser to six BDCs with approximately $18 billion in assets under management as of March 31, 2018. The BDCs managed by FS/KKR include FS Investment Corporation, FS Investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV, Corporate Capital Trust, Inc. and Corporate Capital Trust II. FS/KKR seeks to leverage the size of its platform, differentiated origination capabilities and expertise in capital markets to maximize returns and preserve capital for investors.
FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth and focuses on setting industry standards for investor protection, education and transparency. FS Investments is headquartered in Philadelphia, PA with offices in New York, NY, Orlando, FL and Washington, DC. Visit www.fsinvestments.com to learn more.
KKR Credit is a subsidiary of KKR & Co. LP, a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic manager partnerships that manage hedge funds. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.”
AE Industrial Partners
AE Industrial Partners is a private equity investment company founded in 1998, by David Rowe and his late father, aviation pioneer Brian Rowe, to make direct investments in aerospace, power generation and specialty industrial companies. Today AE Industrial is led by 11 partners with each having an average of over 30 years of relevant operating and direct investment experience. AE Industrial is focused on investing in precision component manufacturing, distribution, MRO (maintenance, repair and overhaul) and industrial service-based businesses that are strategically important to their market places. AE Industrial has invested in over 50 companies including: Aviall, Dynamic Precision Group, Grand Prairie Accessory Services, Moeller Aerospace, Landmark Aviation, Kellstrom Materials and Belcan Corporation. Visit www.aeroequity.com to learn more.
