Global Jet Capital has closed its BJETS 2020-1 securitisation, raising approximately $522 million. BJETS 2020-1 is Global Jet Capital's fourth ABS offering, bringing total assets securitised to over $2.8 billion and bonds issued to over $2.3 billion.
The BJETS 2020-1 offering contained three tranches of notes: a $426.4 million Class A tranche, a $63.6 million Class B tranche, and a $31.8 million Class C tranche. Each tranche was oversubscribed and attracted orders from over 30 investors.
GJC's latest offering, BJETS 2020-1, builds on the performance of the company's previous ABS transactions, which have demonstrated resilience throughout the COVID-19 pandemic. This resilience is attributable to the strong performance of Global Jet Capital's diversified portfolio and relative strength in the business aviation sector, despite challenges related to the COVID-19 pandemic.
Earlier in October, GJC entered into its first privately placed financing transaction, raising $77 million in new funding for the business. The single-tranche investment-grade rated debt was placed with a single institutional investor. EA Markets served as exclusive financial advisor and placement agent for Global Jet Capital.
CEO Shawn Vick states: “We are pleased that we continue to broaden our investor base with each new offering, having added several new investors to BJETS 2020-1 who were attracted to the business aviation sector and our company. We also appreciate the support of our existing and new lenders and the confidence that their continued commitment to the credit facility reflects in our business. We will continue to use the ABS market as an integral part of our funding strategy.
“Our ongoing success in the ABS market and the growing strength of our liquidity profile are representative of our underwriting discipline and the resulting stability of our portfolio, not to mention the vitality of the business aviation sector as a whole. The value proposition supporting business aviation, namely random access, productivity and security, has never been more important to corporations and business leaders around the globe. The evidence of this can be seen in business aircraft operations and transaction metrics which snapped back to near 2019 levels following an initial drop off at the outset of the COVID-19 pandemic.”