Global Jet Capital Signs Deal to Buy GE Capital's Corporate Aircraft Assets

BOCA RATON, Fla., Oct. 6, 2015 /PRNewswire/ -- Global Jet Capital, a company providing leasing and lending solutions for large-cabin, long-range private jets, has signed an agreement to purchase approximately $2.5 billion in net assets from GE Capital's Corporate Aircraft portfolio in the Americas.

The portfolio has adhered to the most comprehensive underwriting and collateral evaluation practices and it has industry leading documentation and collateral securing processes.

In addition to GE's aircraft loan and lease portfolio, the GE Capital Corporate Aircraft team will join the Global Jet Capital organization.

Global Jet Capital, which was launched last year, is capitalized by investment funds managed by Franklin Square Capital Partners (sub-advised by GSO Capital Partners, a Blackstone company); The Carlyle Group; and AE Industrial Partners.

The company's current management team and executive committee is comprised of leaders from business jet manufacturers, maintenance and service providers and leading financial institutions who have served the private aircraft industry for a combined 200-plus years and have completed over 3,500 aircraft transactions.

A portion of the committed financing for the transaction was provided by FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III) and FS Energy & Power Fund (FSEP), BDCs managed by affiliates of Franklin Square and sub-advised by GSO Capital Partners LP (GSO) or its affiliates.

"This transaction is key to the execution of Global Jet's growth strategy," said Michael C. Forman, Chairman and Chief Executive Officer of Franklin Square. "We are pleased that the scale of our BDC platform enabled us to support Global Jet in an acquisition of this size."

"This transaction demonstrates the vision and determination of our partnership group to build the leading corporate aircraft financing platform in the world. We have a uniquely talented management team and unparalleled financial resources," commented Marc Baliotti, Managing Director at GSO.

Shawn Vick, Executive Director of Global Jet Capital said, "We are investing heavily in growing the business both organically and through strategic acquisitions such as this one with GE. This is a prime example of our industry expertise and investment capital coming together to evaluate and identify an opportunity to expand the business in a disciplined, carefully measured way."

"We are pleased to sell our Corporate Aircraft financing portfolio to Global Jet Capital, a buyer that is fully committed to investing and growing the business," said Keith Sherin, GE Capital chairman and CEO. "We know our customers will benefit from the combined strength and expertise of the Global Jet Capital team and will continue to receive the high level of service they have come to expect from us."

The transaction is expected to close in stages over the next several months, subject to customary regulatory and other approvals.

About FSIC

FSIC is a publicly traded BDC focused on providing customized credit solutions to private middle market U.S. companies. FSIC seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies to achieve the best risk-adjusted returns for its investors. In connection with its debt investments, FSIC may receive equity interests such as warrants or options.

FSIC is advised by FB Income Advisor, LLC, an affiliate of Franklin Square, and is sub-advised by GSO / Blackstone Debt Funds Management LLC (GDFM), an affiliate of GSO. GSO, with approximately $81.3 billion in assets under management as of June 30, 2015, is the credit platform of Blackstone, one of the world's leading managers of alternative investments. For more information, please visit www.fsinvestmentcorp.com.

About FSIC II and FSIC III

FSIC II and FSIC III are publicly registered, non-traded BDCs sponsored by Franklin Square. FSIC II and FSIC III focus primarily on investing in the debt securities of private companies throughout the United States, with the investment objectives of generating current income and, to a lesser extent, long-term capital appreciation for their investors. FSIC II and FSIC III are advised by affiliates of Franklin Square and are sub-advised by GDFM. For more information, please visit www.franklinsquare.com.

About FSEP

FSEP is a publicly registered, non-traded BDC sponsored by Franklin Square. FSEP focuses primarily on investing in the debt and income-oriented equity securities of privately held U.S. companies in the energy and power industry. FSEP's investment objectives are to generate current income and long-term capital appreciation. FSEP is advised by FS Investment Advisor, LLC, an affiliate of Franklin Square, and is sub-advised by GSO.

About Franklin Square

Franklin Square is a leading manager of alternative investment funds designed to enhance investors' portfolios by providing access to asset classes, strategies and asset managers that typically have been available to only the largest institutional investors. The firm's funds offer "endowment-style" investment strategies that help construct diversified portfolios and manage risk. Franklin Square strives not only to maximize investment returns but also to set the industry standard for best practices by focusing on transparency, investor protection and education for investment professionals and their clients.

Founded in Philadelphia in 2007, Franklin Square quickly established itself as a leader in the world of alternative investments by introducing innovative credit-based income funds, including the industry's first non-traded BDC. As of June 30, 2015, the firm managed approximately $16.8 billion in total assets, including $15.4 billion in BDC assets, making it the largest manager of BDCs. For more information, please visit www.franklinsquare.com.

Contact Information:
Franklin Square Media Team
[email protected]
215-495-1174

Jim Ballan
Senior Vice President,
Investor Relations & Capital Markets
[email protected]
267-439-4375

About Global Jet Capital

Global Jet Capital is a financial services company providing financing solutions for the private aircraft market. The business is capitalized by world-class private investors with expertise in the global aviation industry: GSO Capital Partners, a Blackstone company, in partnership with Franklin Square Capital Partners, The Carlyle Group and AE Industrial Partners. We offer a management team with expertise in financing, asset management, acquisition, marketing, lease administration and product support that understands the intricacies of the private aircraft market. Global Jet Capital serves virtually all jurisdictions and has the capital and expertise to meet the needs of the global private aircraft market, with flexibility and speed.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $203 billion of assets under management across 126 funds and 139 fund of funds vehicles as of June 30, 2014. Carlyle's purpose is to invest wisely and create value on behalf of its investors. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries including aerospace, defense and government services; consumer and retail; energy; financial services; healthcare; industrial; real estate; technology and business services; telecommunications; and media and transportation. The Carlyle Group employs more than 1,600 people in 40 offices across six continents. www.carlyle.com

About AE Industrial Partners

AE Industrial Partners was founded in 1998 by Brian H. Rowe and David H. Rowe to channel their extensive network of business relationships in the aerospace industry into a private equity portfolio of aerospace investments. Over the years, AE Industrial Partners developed a proprietary network of operating executives focused on investing in the aerospace and power generation industries with capital provided by the founders, its partners and industry executives. www.aeroequity.com  

SOURCE Franklin Square Capital Partners

Related Links

http://www.franklinsquare.com