Global Jet Capital raises $575m with BJETS 2024-1 issuance

Global Jet Capital, a major player in the business jet financing arena, successfully executed a $575m lift-off through the issuance of their BJETS 2024-1 asset-backed security (ABS).

The offering consisted of a three-tranche structure, catering to investors with varying risk appetites.

The $459.9m Class A tranche, with a A/A rating, signifying a low-default investment. The $73m Class B tranche, with a BBB+/BBB rating, offering a bit more risk for a potentially higher return.

Rounding out the structure is the $42m Class C tranche, which carries the BB/BB rating, translating to the highest risk/reward proposition for yield-hungry investors.

“We are very pleased with the results of our latest successful issuance,” said Vivek Kaushal, CEO, Global Jet Capital. “It underscores the robustness of the BJETS securitisation program and the strong performance of the company’s previous ABS transactions. We continue to broaden our investor base, demonstrating the increasing appeal of the business aviation sector and our company.”

This is Global Jet Capital’s seventh ABS offering, bringing total assets securitised to approximately $5.1bn and bonds issued to approximately $4.2bn. The transaction successfully attracted 38 investors, with seven being fresh faces to the BJETS programme.

Citigroup served as the lead structuring agent and bookrunner, supported by Deutsche Bank Securities, Morgan Stanley, BofA Securities, and KKR Capital Markets acting as joint structuring agents and bookrunners.

Citizens Capital Markets also joined the party as a co-manager. Notably, Global Jet Capital will retain servicing rights on the securitised assets.

Under the hood of BJETS 2024-1 lies the securitisation of cash flows generated from a diversified pool of business jet loans and leases.

This offering encompasses 31 such leases and loans extended to corporations and prominent figures across 18 distinct industries. The underlying assets themselves showcase a variety of 21 different aircraft models, with a focus on mid-cabin to large-cabin business jets.