Global Jet Capital to buy $2.5bn in GE aircraft loans

The GSO, Carlyle and AE Industrial Partners-backed firm has agreed to purchase an aircraft lease and loan portfolio from GE Capital Corporate Aircraft in the Americas.

Global Jet Capital, a financing provider for private jets, has agreed to purchase the aircraft lease and loan portfolio from GE Capital Corporate Aircraft in the Americas representing about $2.5 billion of net assets. GE Capital is shedding the portfolio as General Electric undergoes the sale of most of its lending business. As part of the transaction, the GE Capital Corporate Aircraft team will join the Global Jet Capital business, the firm said in a statement.

Global Jet Capital was launched a year ago with financing from GSO Capital Partners in partnership with Franklin Square Capital Partners (via the FSIC BDCs they co-manage together), The Carlyle Group and AE Industrial Partners.

“We are investing heavily in growing the business both organically and through strategic acquisitions such as this one with GE,” Shawn Vick, executive director of Global Jet Capital, said in a statement. “This is a remarkable portfolio of corporate aviation assets, and this investment underlines our confidence in the long-term growth prospects of the large cabin, long-range private jet market,” he added.

The price point of the aircraft ranges between $25 million and $75 million on average. “Corporate users and high-net-worth individuals will seek competitive financing solutions rather than allocate their own cash resources which are better invested in their own businesses,” Vick continued.

Global Jet Capital was advised on the deal by Deutsche Bank Securities, BofA Merrill Lynch and Citi. Latham & Watkins, Clifford Chance US and Kirkland & Ellis served as legal advisors. Closing depends on certain customary conditions and is expected to occur in stages over the next few months.