Business aircraft financial solutions firm Global Jet Capital has completed an inaugural securitization for $608 million, marking the first asset-backed security (ABS) capital markets financing backed solely by business jet operating leases and loans. The notes were structured in three tranches: an A-rated $497 million tranche; a BBB-rated $74 million tranche; and a BB-rated $37 million tranche.
According to Global Jet Capital, the transaction was almost three times oversubscribed, generating more than $1.7 billion in orders from more than 30 investors. The deal was structured and booked by Deutsche Bank Securities, with assistance from Bank of America Merrill Lynch, Citigroup, and Morgan Stanley. Global Jet Capital said it will continue to service the assets.
“The investor community is increasingly looking to diversify their portfolios to reduce risk and find new opportunities,” said Global Jet Capital CEO Shawn Vick. “Their response to our offering is testament to both the strong portfolio of assets we have created and the expertise of the management team. We are especially pleased at the range of investors we have attracted.”
Global Jet Capital plans to continue to use the ABS market as an “integral part” of its funding strategy in the future, it said. The company currently has more than $2 billion in business aircraft assets under management.