JetZero closed a senior secured term loan facility of up to $100 million. The capital extends a run of program milestones for JetZero’s all-wing airplane, which is designed for the middle market (~250 passenger capacity for up to 5,000 nautical mile range) that will cut fuel burn and emissions by up to 50% relative to conventional tube-and-wing aircraft at the same passenger capacity. Proceeds will go towards the acceleration of technology maturation, Demonstrator Jet1 manufacturing and buildout of JetZero’s U.S. manufacturing and test facilities in Greensboro, NC, along with growth and working capital in support of the company’s U.S. operations.
“This facility is targeted for pace,” Tom O’Leary, founder and CEO of JetZero, said. “Through this facility, we will fund tooling and production facilities in North Carolina, advancing aerospace innovation and reindustrializing America. Not only has the time come to reshape aviation, but the Z4 will lead the way.”
The Z4 is expected to enter service in the early 2030s.
“Adding sophisticated credit providers to our team as investors and stakeholders validates our creditworthiness and informs our funding roadmap,” Sergey Kulyagin, chief financial officer and treasurer of JetZero, said.
The lender group includes Pinegrove Credit Partners backed by Brookfield and HRTG Partners, alongside Silicon Valley Bank, a division of First-Citizens Bank.
“JetZero is moving from demonstration to production, and that transition is where capital structure matters most,” Craig Caukin, partner at Pinegrove, said. “We structured this facility around the program’s real milestones. Together with our limited partners, we will be looking to expand the capacity of this facility when the opportunity presents itself.”
