Global Jet Capital Completes Securitization, Raising $663M

·5 min read
Shawn Vick, CEO of Global Jet Capital, stated, “We are very pleased with the outcome related to BJETS 2021-1, which is coming off the heels of the success we had with BJETS 2020-1."
Shawn Vick, CEO of Global Jet Capital, stated, “We are very pleased with the outcome related to BJETS 2021-1, which is coming off the heels of the success we had with BJETS 2020-1."
Shawn Vick, CEO of Global Jet Capital, stated, “We are very pleased with the outcome related to BJETS 2021-1, which is coming off the heels of the success we had with BJETS 2020-1."

Danbury, CT, March 16, 2021 (GLOBE NEWSWIRE) --

Global Jet Capital Completes Securitization, Raising $663M

Danbury, CT – March 16, 2021 - Global Jet Capital, a global leader in financial solutions for business aircraft, announced today the closing of its BJETS 2021-1 securitization, raising approximately $663 million. BJETS 2021-1 is Global Jet Capital’s fifth ABS offering, bringing total assets securitized to over $3.6 billion and bonds issued to over $2.9 billion.

The BJETS 2021-1 offering contained three tranches of notes: a $538.3 million Class A tranche, a $78.0 million Class B tranche, and a $46.8 million Class C tranche. Each tranche was oversubscribed and attracted orders from over 40 investors.

Global Jet Capital’s latest offering, BJETS 2021-1, builds off the strong performance of the company’s previous ABS transactions, which have demonstrated remarkable resilience throughout the COVID-19 pandemic – in stark contrast to a wide variety of other ABS asset classes, including commercial aviation. This resilience is attributable to the strong performance of Global Jet Capital’s highly diversified portfolio and relative strength in the business aviation sector despite challenges related to the COVID-19 pandemic.

As with previous BJETS transactions, this deal consists of a collection of business aircraft loans and leases representing a diverse group of obligors and assets. BJETS 2021-1 comprises over 45 corporations and global business leaders representing over 10 different industry segments, from pharmaceuticals to consumer durables. Over 20 different aircraft models – primarily mid- to large-cabin business aircraft – are represented in the transaction.

Morgan Stanley was the lead structuring agent and lead bookrunner and Citigroup, Deutsche Bank Securities, BofA Securities, The Carlyle Group and KKR Capital Markets were joint structuring agents and joint bookrunners for the BJETS 2020-1 transaction. In addition, Citizens Capital Markets was a Co-Manager. Global Jet Capital, Inc. will continue to service the securitized assets.

Shawn Vick, CEO of Global Jet Capital, stated, “We are very pleased with the outcome related to BJETS 2021-1, which is coming off the heels of the success we had with BJETS 2020-1. With each new issuance we are bringing in new investors to the platform, in this case 15 new accounts. The transaction was seven times subscribed, and our coupon rates again improved as the ABS market continues to show growing understanding and confidence in the business aviation sector and Global Jet Capital.”

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Notes to editors

Global Jet Capital

With over $2.6 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 220-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 investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $246 billion of assets under management as of December 31, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs 1,825 people in 29 offices across five continents.

FS/KKR Advisor, LLC

FS/KKR Advisor, LLC (FS/KKR) is a partnership between FS Investments and KKR Credit that serves as the investment adviser to BDCs with approximately $16 billion in assets under management as of December 31, 2020. The BDCs managed by FS/KKR are FSK and FS KKR Capital Corp. II. (NYSE: FSKR).

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 Leawood, KS. Visit www.fsinvestments.com to learn more.

KKR Credit is a subsidiary of KKR & Co. Inc., a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (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 firm specializing in Aerospace, Defense, Space & Government Services, Power Generation, and Specialty Industrial markets. AE Industrial Partners invests in market-leading companies that can benefit from its deep industry knowledge, operating experience, and relationships throughout its target markets. AE Industrial Partners is a signatory to the United Nations Principles for Responsible Investing. Learn more at www.aeroequity.com.

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CONTACT: Aimee Talbert Nardini Global Jet Capital 5612121594 atalbertnardini@globaljetcapital.com


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