The offering consisted of a three-tranche structure, catering to investors with varying risk appetites.

The $459.9m Class A tranche, with a A/A rating, signifying a low-default investment. The $73m Class B tranche, with a BBB+/BBB rating, offering a bit more risk for a potentially higher return.

Rounding out the structure is the $42m Class C tranche, which carries the BB/BB rating, translating to the highest risk/reward proposition for yield-hungry investors.

“We are very pleased with the results of our latest successful issuance,” said Vivek Kaushal, CEO, 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.”

This is Global Jet Capital’s seventh ABS offering, bringing total assets securitised to approximately $5.1bn and bonds issued to approximately $4.2bn. The transaction successfully attracted 38 investors, with seven being fresh faces to the BJETS programme.

Citigroup served as the lead structuring agent and bookrunner, supported by Deutsche Bank Securities, Morgan Stanley, BofA Securities, and KKR Capital Markets acting as joint structuring agents and bookrunners.

Citizens Capital Markets also joined the party as a co-manager. Notably, Global Jet Capital will retain servicing rights on the securitised assets.

Under the hood of BJETS 2024-1 lies the securitisation of cash flows generated from a diversified pool of business jet loans and leases.

This offering encompasses 31 such leases and loans extended to corporations and prominent figures across 18 distinct industries. The underlying assets themselves showcase a variety of 21 different aircraft models, with a focus on mid-cabin to large-cabin business jets.

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A number of milestones have contributed to the company’s overall success. In response to growing international demand, Global Jet Capital added fully functioning offices in Zurich and Hong Kong earlier this year to complement those already operating in Danbury, CT, Boca Raton, FL and Mexico City. In June, the company announced its third successful Asset Backed Security offering bringing total assets securitized to over US$2.1 billion dollars. During the summer key appointments saw Stefan Abbruzzese named as Chief Commercial Officer, allowing industry veteran Dave Labrozzi to step into the new role of Vice Chairman enabling him to further focus on developing global business strategy.

The banner year has also been led by growing demand for the company’s flexible operating lease and progress payment financing solutions. “Buyer behavior is clearly changing. Business aviation once considered operating leases as somewhat exotic, yet today we are meeting with an increasing number of corporations and high net worth individuals motivated by the fixed rates, protection of capital, and ease of disposition afforded by our operating lease solution,” explains Chairman and CEO, Shawn Vick. Progress payment financing solutions are also growing in popularity for their ability to support a customer’s optimization of capital during the acquisition process and seamlessly transitions into an operating lease or loan once the new aircraft is delivered. “The bottom line is that business jets are depreciating assets. Our solutions are designed to protect our customers from the impact of that depreciation and optimize their capital while experiencing the unmatched productivity afforded by business jet ownership,” added Vick.

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