9 July 2018
- Emily Wicker, Lee Askenazi, Philip Wagman, Thomas Kearney, Asena May, Olga Miller, Allein Sabel
- New York
Clifford Chances advises Global Jet Capital on $1.5 Billion of Financing
Clifford Chance has advised Global Jet Capital, Inc., as servicer, and Business Jet Securities 2018-2, LLC, as issuer, on the issuance of $674 million of secured notes in an asset backed securitization on June 28, 2018. The securitization ("BJETS 2018-2"), is the second ABS offering that Global Jet Capital has closed in the last four months, bringing total assets securitized to over $1.5 billion (by asset value).
BJETS 2018-2 contains three tranches of notes: a $550,390,000 Class A tranche, rated A (sf) by Kroll; a $82,140,000 Class B tranche, rated BBB (sf) by Kroll; and a $41,070,000 Class C tranche, rated BB (sf) by Kroll. The transaction, which was in the market for less than a week, was oversubscribed by more than two times, attracting orders from a wide variety of investors.
Deutsche Bank Securities was the Lead Structuring Agent and Lead Bookrunner for the transaction. BofA Merrill Lynch, Citigroup and Morgan Stanley were Joint Structuring Agents and Joint Bookrunners for BJETS 2018-2. Global Jet Capital, Inc. will continue to service the assets.
Simultaneously with closing BJETS 2018-2, Clifford Chance advised affiliates of Global Jet Capital on the completion of a new $900 million, 5-year senior secured warehouse credit facility (with a revolving feature) with Deutsche Bank AG, Bank of America, Citibank and Morgan Stanley Bank, as initial lenders.
Clifford Chance had previously advised Global Jet Capital in their initial ABS offering in February 2018. Clifford Chance advised The Carlyle Group in the initial structuring and formation of Global Jet Capital and has advised Global Jet Capital in the acquisition and financing of over $2.3 billion of business jet aircraft since 2015.
The New York-based Clifford Chance team advising on this transaction was led by partner Emily Wicker and associate Patrick Reisinger and included extensive support from partners Philip Wagman and Lee Askenazi; associates Alastair MacDonald, Olga Miller, Allein Sabel, Thomas Kearney, Asena May and Mark Denton; and legal assistant Katie McKay.
With over $2.0 billion in assets under management, Global Jet Capital provides financing solutions for the business aircraft market. The Company is capitalized by world-class private investors with expertise in the global aviation industry: The Carlyle Group, FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit, and AE Industrial Partners. The Global Jet Capital management team has served the business aircraft industry for a combined 200-plus years and has completed over 3,500 aircraft transactions. The Company has the expertise, financial strength, industry relationships and infrastructure necessary to offer a variety of flexible financing solutions at the speed the market requires. Visit www.globaljetcapital.com to learn more.