Global Jet Capital completes BJETS 2024-1 ABS

Global Jet Capital has closed its BJETS 2024-1 asset based securitisation (ABS), raising approximately $575 million. BJETS 2024-1 is Global Jet Capital’s seventh ABS, bringing total assets securitised 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, priced with a 6.20% coupon and 185 basis point (bps) spread, a $73.0 million Class B tranche, priced at 6.92% and 260bps spread, and a $42.0 million Class C tranche priced with a 9.13% coupon and 475bps spread. S&P Global Ratings and Kroll Bond Rating Agency 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, seven of which were new to the BJETS program. As with previous BJETS issuances, BJETS 2024-1 securitises 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. The portfolio includes 21 different aircraft models – primarily mid- to large-cabin business aircraft. 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. Citizens Capital Markets was a co-manager. Global Jet Capital will continue to service the securitised assets. “We are very pleased with the results of our latest successful issuance” said Vivek Kaushal, CEO of Global Jet Capital. “It underscores the robustness of the BJETS securitisation 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.”