Private jet company VistaJet is attempting to raise $500 million in new money via a six year term loan B, according to an investor presentation, that allows for a $100 million distribution to equity holders. Pricing for the proposed term loan has not been set yet and investor commitments are due by March 27th. The deal was pitched to investors on a call today.
Sources say assuming a 1-1.5% OID, the cost to Vista (based on current price talk) would be ~8-8.5% on a floating basis. Also while the term loan B is NC1 and par thereafter, the investors’ return might be slightly higher if the loan is called early.
The term loan raise is on top of a $600 million convertible preferred equity raise led by RRJ Capital which is expected to close March 28th, according to the company. The pref share raise has taken months to sell by Jefferies.
VistaJet says it will use the new money to repay some of its existing debt that includes paying off some of the $670 million of aircraft financing debt and repay its RCF/bank debt ($229mn). Vista will use eligible aircraft (jets worth around $700 million in collateral value according to Vistajet and given how plane values are often inflated you have take that into account) for collateral with some carveouts. What’s notable is the fact that they are not using the raise to do typical EETC financing and have instead appear to be approaching a different kind of investor group.
VistaJet’s parent Vista Global is a privately held company led by Thomas Flohr who Dan McCrum at the FT recently reported is involved in a lawsuit that involves alleged financial misconduct.
this story is developing
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