Sankaty Jet Capital, a business aviation lending platform focused on providing financing solutions for counterparties across the business aviation industry and a wholly-owned subsidiary of AIP Capital, and Wheels Up Experience, a provider of on-demand private aviation, closed a $68 million committed secured mezzanine facility.
The capital will be used to facilitate the purchase of additional Phenom 300 and Challenger 300 Series aircraft as part of Wheels Up’s previously announced fleet modernization plans. The facility will be secured initially by 51 existing aircraft, representing core assets of the Wheel Up business, with a total appraised value of ~$277.8 million, and is expected to accommodate the acquisition of additional aircraft over the next 18 months.
“We are proud to commence our partnership with Wheels Up by providing a bespoke financing solution to support their fleet modernization program,” Ford von Weise, CEO of Sankaty, said.
Scott Debano, head of capital markets at AIP Capital, commented, “Wheels Up has solidified itself as the leading provider of on-demand private aviation. This, coupled with our long-standing relationship with Delta Air Lines, which spans over two decades, created an opportunity for this transaction and we hope many more to come.”
George Mattson, CEO of Wheels Up, said, “This strategic financing with Sankaty and AIP not only provides the investment capital needed to execute our growth plan but reflects confidence in the progress we’re making towards building a strong and sustainable business.”
