Business aviation financing provider Global Jet Capital completed a second securitization round for the year, raising approximately $674 million, with the closing of its BJETS 2018-2 asset-backed security (ABS) offering. The transaction, which was on the market for less than a week, attracted a wide variety of investors and was oversubscribed, according to the lender.
“This is a continuation of the development of the corporate jet asset class for the ABS market, which started with the issuance of BJETS 2018-1, the first ABS capital markets financing backed exclusively by business jet operating leases and loans,” explained company CEO Shawn Vick. “The transaction generated strong demand from a diverse investor base at tighter overall yields than BJETS 2018-1 despite widening benchmarks, reflecting growing support for the company’s strategy and performance.”
Along with the closing of BJETS 2018-2, Global Jet Capital also completed a new $900 million, five-year senior secured warehouse revolving credit facility with Deutsche Bank, Bank of America, and Morgan Stanley. It now has more than $1.5 billion in total securitized assets.