Daily News: October 27, 2014

GSO Capital, Others Invest in Global Jet Capital

Global Jet Capital, a new company providing leasing and lending solutions for large-cabin, long-range business jets, has officially begun operations. GSO Capital Partners, a Blackstone company in partnership with Franklin Square Capital Partners; The Carlyle Group; and AE Industrial Partners partnered to launch the company, which has the financial capacity to fund more than $2 billion in aircraft financing for individual, corporate and government use globally.

Global Jet Capital offers operating and interim leases, finance leases and mortgage loans, progress payments and mezzanine financing for both new and previously owned business jets. The company’s equity base, flexible business model and industry expertise allow it to move quickly to provide clients with customized financing solutions.

“Our management team, executive committee and sponsors have been evaluating this marketplace for the last 36 months,” said Shawn Vick, chairman of Global Jet Capital’s executive committee. The conditions are right for asset-based structured financing services. In recent years, traditional lending sources have not been as active in business jet financing as they used to be, leaving an opportunity for Global Jet Capital.

“Vick will be joined on the executive committee by two other aviation industry veterans,” said Bill Boisture and David Rowe, who have extensive experience in the business jet leasing and financing sectors. “The executive committee will lead a team of seasoned managers with broad-based experience who will manage the company in sales, marketing, operations and administration.”

“Our team’s research, as well as that of independent sources, indicates there is increasing demand for leasing and lending solutions in this sector of the market,” said David Rowe, chairman. “As a result of our structure, capitalization and flexibility, we have financing solutions that may not be available from traditional lending sources.”

“We have been evaluating the global corporate aviation industry for over a year and could not be more pleased with the world-class management team and investor group that we have assembled for this opportunity,” said Dan Smith, senior managing director at GSO Capital Partners.

“The Global Jet team has extensive experience in the business aviation industry,” said Carlyle Managing Director Adam Palmer. “We are eager to address this market opportunity by combining their operational expertise with the decades of aerospace investing experience and global footprint of the sponsors.”