Business aircraft financial solutions provider Global Jet Capital has closed its fifth asset-backed securitization (ABS), with the BJETS 2021-1 ABS that closed yesterday adding $663 million to its securitized assets and bringing its total to more than $3.6 billion. It has also issued more than $2.9 billion in bonds.
Global Jet Capital’s focus on financing and leasing super-midsize and large-cabin business jets no older than 10 years old but preferably younger than five years old is paying off, according to CEO Shawn Vick. “There is an addressable market in these categories of $12 to $14 billion,” he said, “and our ability to underwrite $500 to $800 million means there is ample opportunity, and we can be highly selective.”
The business aviation market that the company serves has been highly resilient during the Covid pandemic, unlike that for the airlines. “The issue of health security has come to the forefront in addition to the numerous benefits like having access and what [business aviation] provides in terms of utility and security,” Vick said. “This will be the new normal, and business aviation will be highly valued going forward.”
The three tranches that made up the BJETS 2021-1 offering were all oversubscribed, according to Global Jet Capital. The Class A tranche was for $538.3 million, Class B $78 million, and Class C $46.8 million. For this ABS, Morgan Stanley was lead structuring agent and bookrunner. Citigroup, Deutsche Bank Securities, BofA Securities, The Carlyle Group, and KKR Capital Markets were joint structuring agents and joint bookrunners, and Citizens Capital Markets was a co-manager.