Global Jet Capital launches latest $517 million ABS

Darren Wood
By Darren Wood June 5, 2019 11:10

Global Jet Capital launches latest $517 million ABS

Following the success of two previous secured deals featuring a portfolio of business jets, Global Jet Capital has launched Business Jet Securities 2019-1 asset backed securitisation (ABS).

Business Jet Securities 2019-1 issues $517.1 million of debt in three tranches of notes: $417.4 million A notes, rated A- by Kroll Bond Rating Agency (KBRA), with an initial LTV of 67%; $62.3 million B notes, rated NR, with an LTV of 77%; and $37.4 million C notes, rated NR with an LTV of 83%.

All of the notes have a repayment date of July 15, 2026, with a legal final maturity date of July 15, 2034.

The notes are secured on a portfolio of 33 business jet aircraft and two helicopters, with an accumulative worth of $623 billion; these consist of five Learjet 75s, four G650ERs, three G280, two Falcon 2000LXS, two Falcon 7X, two Falcon 900LX, two Falcon 900EX Easy, two G450, two AW139, one Global 6000, one Global 5000, one Lineage 1000, one Falcon 2000LX, one Falcon 2000DX, one G-V, one Challenger 300, one Citation XLS+, one Challenger 604, one LEarjet 45XR and one Learjet 40XR .

These are on lease to 35 lessees in six different countries, with an initial weighted average age of 5 years and a weighted average remaining term of approximately 89 months.

Global Jet Capital is a Delaware limited partnership formed in 2014 by private investment funds managed by affiliates of The Carlyle Group, FS/KKR Advisor, a partnership between FS Investments and KKR Credit, and AE Industrial Partners.

Global Jet Capital remains as the servicer. Citi is the lead structuring agent and lead bookrunner, as well as indenture trustee and account bank. The Bank of Utah is the security trustee.

This deal marks the third time Global Jet Capital has launched an ABS, the firm closed its inaugural securitisation, the $608 million BJETS 2018-1 transaction, which priced on February 21, 2018. Its second BJETS 2018-2 ABS, raised approximately $674 million in June 2018.

 

Darren Wood
By Darren Wood June 5, 2019 11:10