Global Jet Capital has closed its BJETS 2022-1 securitisation, raising approximately $609 million. BJETS 2022-1 is Global Jet Capital's sixth asset-backed security (ABS) offering, bringing the total assets securitised to approximately $4.4 billion and bonds issued to approximately $3.6 billion.
CEO Vivek Kaushal says: “We completed yet another successful issuance despite turbulent market conditions. This demonstrates the maturity of the BJETS securitisation programme and the strong performance of the company's previous ABS transactions, which have shown remarkable resilience largely attributable to the strong performance of Global Jet Capital's highly diversified portfolio and relative strength in the business aviation sector.”
The BJETS 2022-1 offering contained three tranches of notes: a $512.8 million Class A tranche, a $60.3 million Class B tranche and a $35.8 million Class C tranche. It is notable that S&P Global Ratings and Kroll Bond Rating Agency LLC assigned BJETS 2022-1 ratings of A/A-, BBB/BBB and BB/BB on the Class A, B and C tranches, respectively. The transaction attracted 27 investors, eight of which were new to BJETS.
As with previous BJETS transactions, this deal consists of a collection of business aircraft loans and leases representing a diverse group of obligors and assets. BJETS 2022-1 comprises over 37 corporations and global business leaders representing over 23 different industry segments, with the largest segment only making up around 12 per cent. Over 25 different aircraft models, primarily mid to large cabin business aircraft, are represented in the transaction.
Deutsche Bank Securities was the lead structuring agent and lead bookrunner and Citigroup, Morgan Stanley, BofA Securities, TCG Capital Markets and KKR Capital Markets were joint structuring agents and joint bookrunners. In addition, Citizens Capital Markets was a co-manager. Global Jet Capital will continue to service the securitised assets.