Global Jet Capital is sponsoring $659 million in asset-backed securities (ABS) secured by a portfolio of lease and loan payments on business jet aircraft,
Business Jet Securities 2026-1 will sell notes to investors through three tranches of class A, B and C. All the notes have a June 2032 anticipated repayment date, and a legal final maturity date of June 2041.
Morgan Stanley is managing the deal, according to Asset Securitization Report's deal database, which has a closing date of June 15, according to S&P Global Ratings.
Known as BJETS 2026-1, the transaction will repay noteholders sequentially, and the capital structure includes several provisions, including triggers for debt service coverage ratio (DSCR), net loss and utilization that will prompt turbo amortization of the notes, according to S&P.
Fitch assigns A, BBB+ and BB to the class A, B and C notes, respectively; and KBRA assigns A, BBB and BB to classes A, B and C, respectively.
A delinquency test requires that excess cash pay down the notes sequentially if the aggregate delinquent loans represent more than 5.0% of the portfolio balance's average loan balance.
There is also a cumulative net loss test that says if the aggregate cumulative net loss exceeds 4.0% of the average loan balance, then the transaction will use any excess cash to pay down the notes, KBRA said.
The capital structure also includes a liquidity facility equaling nine months of interest due on the class B notes, KBRA said.
The classes A, B and C have initial loan-to-value ratios of 69.0%, 76.0% and 81.0%, respectively, KBRA said.
The leases are related to 28 aircraft with an initial aggregate asset value of $813.6 million by the March 31 cutoff date, on contracts extended to 25 obligors. Economic ownership of business jet aircraft subject to a lease will also securitize the capital raised from investors, according to Kroll Bond Rating Agency.
On average, the leases have an asset value of $29,057, and on a weighted average (WA) basis, a remaining term of 5.5 years and it has an asset age of 5.4 years, KBRA said.
S&P notes that BJETS 2026-1 has a declining loan-to-value (LTV) ratio for the class A notes. Starting at 77.5% at closing, it can be gradually reduced to 67.0% by the sixth anniversary of the closing date, S&P said.
