Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three note classes of Business Jet Securities 2021-1, LLC, Secured Notes, Series 2021-1. The Notes are newly issued asset-backed securities secured by payments due under the lease of, and loans secured by, business jet aircraft and the economic ownership of each business aircraft subject to an operating lease and terms of the fixed rate notes as of February 23, 2021. As of December 31, 2020, the aggregate asset value is approximately $780.2 million. The portfolio consists of 49 assets to 46 obligors. The average asset value is approximately $15.9 million and the weighted average remaining term is approximately 70 months. Operating leases account for approximately 91.2% of the initial portfolio by asset value, while 8.7% are finance leases and 0.1% are loans. -KBRA
The Issuer’s ultimate parent is Global Jet Capital Holdings, LP, a Delaware limited partnership that was formed in 2014 by private investment funds managed by affiliates of The Carlyle Group, FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit, and AE Industrial Partners, LLC. Between 2015 and 2016, subsidiaries and affiliates of GJC purchased a significant number of business jet aircraft-related assets from GE Capital Corporation (“GECC”) and its affiliates. However, approximately 81% of the contracts by value were newly originated by GJC. As of December 31, 2020, the portfolio consists of 49 business jet aircraft, representing 46 unique obligors with a weighted average remaining term of approximately 70 months and an Aggregate Asset Value of approximately $780.2 million. The Asset Value with respect to a loan is defined as the outstanding principal balance, while for a finance lease it is defined as the amount of future rent due (net of interest). With respect to an operating lease, the Asset Value is the appraised value of the aircraft. [KBRA pre-sale]