November 3, 2020
- Emily Wicker, Philip Wagman, Gareth Old, Greg Kahn, Israel Augenstein, Thomas Callahan, Dexter Heeter
- New York
Clifford Chance advises on Global Jet Capital's US$521,800,000 of financing
New York: Leading international law firm Clifford Chance has advised Global Jet Capital, Inc., as servicer, and Business Jet Securities 2020-1, LLC, as issuer, on the issuance of US$521,800,000 Secured Notes in an asset backed securitization (ABS). The securitization (BJETS 2020-1), is the fourth ABS offering that Global Jet Capital has closed.
BJETS 2020-1 includes US$426,400,000 Class A Notes Series 2020-1, US$63,600,000 Class B Notes Series 2020-1 and US$31,800,000 Class C Notes Series 2020-1 rated A(sf)/A- (sf), BBB(sf)/ BBB (sf) and BB(sf)/BB (sf), respectively, by S&P and KBRA. The Notes priced at 2.981% for the Class A, 3.967% for the Class B and 7.142% for the Class C. The Notes are secured by cash flow generated by various leases and loans of business jet aircraft serviced by Global Jet Capital, Inc. BJETS 2020-1 is the first capital markets structured finance transaction secured by aircraft assets since the COVID-19 pandemic.
BofA Securities was the Lead Structuring Agent and Lead Bookrunner for the transaction. Citigroup Global Markets, Deutsche Bank Securities, Morgan Stanley, TCG Capital Markets and KKR Capital Markets were Joint Structuring Agents and Joint Bookrunners for BJETS 2020-1. Global Jet Capital, Inc. will continue to service the assets. The proceeds of BJETS 2020-1 will be used primarily to refinance the BJETS 2018-1 transaction and other secured credit facilities.
Clifford Chance previously advised Global Jet Capital in their initial ABS offering in February 2018 as well as their June 2018 and June 2019 offerings. The firm 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 more than US$2.5 billion of business jet aircraft since 2015.
The New York-based team advising on this transaction was led by partner Emily Wicker and associate Olga Miller and included extensive support from partners Philip Wagman and Gareth Old, counsel Greg Kahn, and associates Israel Augenstein, Tom Callahan and Dexter Heeter.