Flexjet Secures $550M via Senior Unsecured Notes

Flexjet, a Cleveland-based provider of fractional aircraft ownership and leasing, has raised $550 million through a five-year senior unsecured notes issuance by its subsidiary, OneSky Flight LLC. The proceeds will be used to refinance aircraft and real estate debt, pay a $300 million dividend to shareholders, and add $100 million in cash to the balance sheet for fees and expenses.

Flexjet CFO Mike Rossi confirmed the offering, which closed on December 11 and was funded on December 18, was significantly oversubscribed, highlighting strong investor confidence in the company’s performance and financial stability.

Credit agencies have assigned ratings to the issuance, with Moody’s commenting on the company’s strategic use of the funds. Alongside a $427 million draw from a new $600 million warehouse facility, Flexjet plans to strengthen its balance sheet and improve operational liquidity.

Flexjet operates a diverse fleet that includes Embraer E505s, Praetor 500s and 600s, Challenger 350s, Gulfstream G450s and G650s, and Sikorsky S-76 helicopters. The company specializes in fractional ownership, leasing, and jet card services, catering to a growing demand for premium private aviation solutions.

This fundraising effort underscores Flexjet’s robust market position and financial strategy, ensuring continued investment in fleet expansion and operational excellence. With this move, the company is well-positioned to meet shareholder expectations and enhance its service offerings.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com