Global Jet Capital closes $606m BJETS 2022-1 securitisation

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* Global Jet Capital, has closed a $609m 2022-1 securitisation –  BJETS 2022-1 is Global Jet Capital’s sixth asset backed bond.

* With this, its sixth deal, Global Jet Capital has now issued $3.6bn backed by business jets worth $3.6bn.

 

Global Jet Capital has closed a $609m securitisation with BJETS 2022-1.

Global Jet Capital is one of the two main issuers of business jet paper along with Stonebriar Commercial Finance which issues bonds backed by a range of asset classes including aircraft.

The bonds were bough by 27 different investors, including eight who bought BJETS bonds for the first time.

BJETS 2022-1 was backed by 25 different aircraft types – mainly mid sized and large aircraft -financed for 37 corporations and individuals.

“We completed yet another successful issuance despite turbulent market conditions. This demonstrates the maturity of the BJETS securitization program and thestrong performance of the company’s previous ABS transactions, which have shown remarkable resilience largely attributable to the strong performance of Global Jet Capital’s highly diversified portfolio and relative strength in the business aviation sector,” said Vivek Kaushal, CEO of Global Jet Capital.

BJETS 2022-1

A Note: $512.8m
Rated: A (S&P)/A-(Kroll)

B Note: $60.3m
Rated: BBB(S&P)/BBB(Kroll)

C Note: $35.8m
Rated: BB (S&P)/BB (Kroll)

Deutsche Bank Securities was the
Lead structuring agent and lead bookrunner: Deutsche Bank
Joint structuring agents and joint bookrunners: Citigroup, Morgan Stanley, BofA Securities, TCG Capital Markets LLC and KKR Co-manager: Citizens Capital Markets
Servicer: Global Jet Capital will continue to service the securitized assets.

 

 

Press release:

Danbury, CT – May 17, 2022 – Global Jet Capital, a global leader in financial solutions for business aircraft, announced today the closing of its BJETS 2022-1 securitization, raising approximately $609 million. BJETS 2022-1 is Global Jet Capital’s sixth asset-backed security (ABS) offering, bringing total assets securitized to approximately $4.4 billion and bonds issued to approximately $3.6 billion.

The BJETS 2022-1 offering contained three tranches of notes: a $512.8 million Class A tranche, a $60.3 million Class B tranche, and a $35.8 million Class C tranche. It is notable that S&P Global Ratings and Kroll Bond Rating Agency LLC assigned BJETS 2022-1 ratings of A/A-, BBB/BBB and BB/BB on the Class A, B and C tranches, respectively. The transaction attracted 27 investors, 8 of which were new to BJETS.

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 2022-1 comprises over 37 corporations and global business leaders representing over 23 different industry segments, with the largest segment only making up around 12 percent. Over 25 different aircraft models – primarily mid- to large-cabin business aircraft – are represented in the transaction.

Deutsche Bank Securities was the lead structuring agent and lead bookrunner and Citigroup, Morgan Stanley, BofA Securities, TCG Capital Markets LLC and KKR Capital Markets were joint structuring agents and joint bookrunners for the BJETS 2022-1 transaction. In addition, Citizens Capital Markets was a co-manager. Global Jet Capital will continue to service the securitized assets.

Vivek Kaushal, CEO of Global Jet Capital, stated, “We completed yet another successful issuance despite turbulent market conditions. This demonstrates the maturity of the BJETS securitization program and thestrong performance of the company’s previous ABS transactions, which have shown remarkable resilience largely attributable to the strong performance of Global Jet Capital’s highly diversified portfolio and relative strength in the business aviation sector.”

 

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