On the back of its first asset backed securitisation of a portfolio of business jets, Global Jet Capital, has launched its second offering, Business Jet Securities 2018-2. This latest deal comprises three classes of notes secured on a portfolio of 76 business jets with an appraised value of approximately $821.5 million, which are leased to 68 obligors. Approximately 76.5% of the portfolio is initially on operating leases, while 8.0% are loans and 15.5% are finance leases.
The $673.6 million transaction comprises: $550.39 million A notes, which have an initial loan-to-value of 67% and an A rating from Kroll Bond Rating Agency (KBRA); $82.14 million BB-rated B notes with an LTV of 77%; and $41.07 million C notes, rated BB with an LTV of 82%.
The A and B notes amortise on a 12-year straight-line schedule, while the C notes amortise on a five-year straight-line schedule. The anticipated repayment date is five years from the initial closing date.
In common with BJETS 2018-1, this transaction structure also does not permit re-leasing of aircraft, so if an operating lease expires, the transaction will have to dispose of the asset. Operating leases make up 76.5% of the pool by aggregate asset value.
Deutsche Bank is the lead structuring agent and lead bookrunner. Citibank is the indenture trustee and account bank. Bank of Utah is the security trustee. Global Capital remains as the servicer but 1st Source Bank is named as the backup servicer.