VistaJet Raises $1.3B to Boost Financial Strength
VistaJet Group Holding, which operates VistaJet in Malta and XOJET Aviation, has secured a total of USD1.3 billion to strengthen its balance sheet and accelerate deleveraging. The funding comes from two sources: a USD600 million investment by Singapore-based private equity firm RRJ Capital and a USD700 million senior secured loan that was upsized from an initially planned USD500 million due to strong investor demand. This senior secured loan, which carries an annual interest rate of 3.75%, is set to become payable in 2031. The majority of the funds will be used to repay existing secured debt, enabling VistaJet Global to optimize its capital structure, enhance free cash flow generation, and reduce overall indebtedness.
The decision to increase the size of the secured loan reflects robust market demand and confidence in VistaJet Global’s strategic direction. The senior secured loan closed on April 1, while the transaction with RRJ Capital was finalized on March 28. A statement from VistaJet Global noted that the new funding will help the group diversify its investor base and further strengthen its financial position, supporting its commitment to accelerate deleveraging and maintain operational flexibility amid evolving market conditions.
In parallel with these financing activities, S&P Global recently updated its outlook for VistaJet Global. The ratings agency observed that although the company’s 2024 financial results showed improvement year on year, the performance did not meet initial expectations. S&P Global cited softer-than-anticipated demand for private charter flights across multiple regions. Nonetheless, the agency recognized that VistaJet Global outperformed the broader market, a result attributed to its operational efficiencies and strategic market positioning. The revised outlook underscores the challenges in the business jet industry while highlighting the resilience and adaptability of the company.
During a recent Bloomberg TV interview, VistaJet Global chairman Thomas Flohr noted that the global business jet market experienced a decline of around 3-4% over the past 12 months. However, he pointed out that the Asian market emerged as a bright spot, growing by about 15% last year. This surge in Asia was primarily driven by increased demand for long-haul aircraft such as the Global 7500, which is capable of nonstop flights between key cities in Asia, the United States, and Western Europe. According to Mr. Flohr, long-haul operations remain a cornerstone of the company’s growth strategy, presenting significant opportunities to boost revenue and expand its market share in an increasingly competitive environment.
VistaJet and XOJET operate on a membership model that offers customers access to a global fleet of approximately 360 business jets. This model caters to high-net-worth individuals and corporate clients seeking flexible, on-demand aviation services. The recent capital infusion is expected to further enhance the group’s competitive positioning in the luxury aviation market by supporting investments in fleet expansion, technology upgrades, and improvements in customer service. By reinforcing its financial strength and diversifying its investor base, VistaJet Group Holding is well-positioned to navigate market uncertainties and capitalize on emerging opportunities in the business jet sector.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com