Flexjet (LXJ, Cleveland Cuyahoga Country) has raised USD550 million via a five-year senior unsecured notes issuance of OneSky Flight LLC, a wholly owned subsidiary. As reported by Private Jet Card Comparisons, the company will use the proceeds to refinance existing aircraft and real estate debt, pay a dividend to shareholders, and put cash on the balance sheet to cover fees and expenses.
Flexjet CFO Mike Rossi told the outlet the offering closed on December 11, was funded on December 18, and was approximately "five times oversubscribed." He said Flexjet’s strong balance sheet and performance allowed the company to issue the unsecured bonds.
In the same week, credit agencies assigned ratings to Flexjet and commented on the bonds. Moody's said the fund, along with a USD427 million draw on its new USD600 unrated million warehouse facility, would finance a USD300 million dividend payout to shareholders, put USD100 million in cash onto the balance sheet for fees and expenses, with the remainder going towards aircraft and real estate debt refinancing.
Flexjet is a provider of fractional aircraft ownership, leasing, and jet card services. According to its website, the company operates Embraer E505s, Praetor 500s, Praetor 600s, Challenger 350s, Gulfstream 450s, 650s, and Sikorsky S-76s.
