Global Jet Capital has closed on its fourth asset-backed securitization (ABS), BJETS 2020-1, which raised $522 million. That brings Global Jet Capital's total assets securitized to more than $2.8 billion and bonds issued to more than $2.3 billion.
This latest ABS comprises aircraft loans and leases representing more than 30 different aircraft models—mostly midsize to large-cabin business jets—used by more than 30 different industry sectors such as medical services and consumer durables. Global Jet CEO Shawn Vick said the ABS served to further broaden the company’s investor base and demonstrated their confidence in the business aviation market despite being in the throes of a global pandemic. Global Jet will continue to use the ABS market as a key part of its funding strategy.
“Our ongoing success in the ABS market and the growing strength of our liquidity profile are representative of our underwriting discipline and the resulting stability of our portfolio—not to mention the vitality of the business aviation sector as a whole,” Vick explained. “The value proposition supporting business aviation—random access, productivity, and security—has never been more important to corporations and business leaders around the globe. The evidence of this can be seen in business aircraft operations and transaction metrics which snapped back to near 2019 levels following an initial drop off at the outset of the Covid-19 pandemic.”