Global Jet Capital, a global leader in financial solutions for business aircraft, announced 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 securitized assets to over $ 3.6 billion and bonds issued to over $ 2.9 billion.
The BJETS 2021-1 offering consisted of 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. dollars. Each tranche was oversubscribed and attracted orders from over 40 investors.
Global Jet Capital’s latest offering, BJETS 2021-1, builds on the strong performance of the company’s previous ABS deals, which have demonstrated remarkable resilience throughout the COVID-19 pandemic – in stark contrast to a large 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 the relative strength of the business aviation sector despite the challenges associated with the COVID-19 pandemic.
As with previous BJETS transactions, this transaction consists of a pool of business aircraft loans and leases representing a diverse group of debtors and assets. BJETS 2021-1 includes more than 45 global companies and business leaders representing more than 10 different industry segments, from pharmaceuticals to consumer durables. More than 20 different aircraft models – mostly mid to large cabin business jets – are represented in the deal.
Morgan Stanley was the principal structuring agent and lead bookrunner and Citigroup, Deutsche Bank Securities, BofA Securities, The Carlyle Group and KKR Capital Markets were co-structuring agents and associate 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, said: “We are very happy with the outcome related to BJETS 2021-1, which comes after the success we have had with BJETS 2020-1. With each new issue, we attract new investors to the platform, in this case 15 new accounts. The transaction was underwritten seven times, and our coupon rates improved again as the ABS market continues to show growing understanding and confidence in the business aviation industry and Global Jet Capital.