Global Jet Capital announced the closing of its BJETS 2024-1 securitization, raising approximately $575 million. BJETS 2024-1 is Global Jet Capital’s seventh asset-backed security (ABS) offering, bringing total assets securitized to approximately $5.1 billion and bonds issued to approximately $4.2 billion.
The BJETS 2024-1 offering contained three tranches of notes: a $459.9 million Class A tranche, a $73.0 million Class B tranche, and a $42.0 million Class C tranche. S&P Global Ratings and Kroll Bond Rating Agency LLC assigned BJETS 2024-1 ratings of A/A, BBB+/BBB and BB/BB on the Class A, B and C tranches, respectively. The transaction attracted 38 unique investors, 7 of which were new to the BJETS program.
As with previous BJETS issuances, BJETS 2024-1 securitizes the cash flows from business aircraft loans and leases representing a diverse group of obligors and assets. BJETS 2024-1 includes 31 leases and loans to corporations and global business leaders representing over 18 different industries. 21 different aircraft models – primarily mid- to large-cabin business aircraft – are represented in the transaction.
Citigroup was the lead structuring agent and lead bookrunner and Deutsche Bank Securities, Morgan Stanley, BofA Securities and KKR Capital Markets were joint structuring agents and joint bookrunners for the BJETS 2024-1 transaction. In addition, Citizens Capital Markets was a co-manager. Global Jet Capital will continue to service the securitized assets.
Vivek Kaushal, CEO of Global Jet Capital, said, “We are very pleased with the results of our latest successful issuance. It underscores the robustness of the BJETS securitization program and the strong performance of the company’s previous ABS transactions. We continue to broaden our investor base, demonstrating the increasing appeal of the business aviation sector and our company. We also appreciate the support of our existing lenders and their continued commitment and confidence in our business. This successful issuance is underpinned by the hard work and dedication of the Global Jet Capital team, and I am grateful for their contributions.”