VistaJet Group Holding, which operates VistaJet (Malta) and XOJET Aviation, has raised USD1.3 billion, including USD600 million from Singapore-based private equity firm RRJ Capital and USD700 million from a senior secured loan that becomes payable in 2031. The bulk of the funds will go towards repaying existing secured debt.
The company had intended to raise USD500 million via the senior secured loan but upsized it due to what it said was strong demand. VistaJet Global will pay 3.75% annual interest on the borrowings. The transaction closed on April 1, and the RRJ Capital transaction closed on March 28.
Referring to the RRJ deal, a VistaJet Global statement said the funding would “optimise the group’s capital structure, enhance free cashflow generation, and reduce indebtedness. This is in line with Vista’s strong commitment to accelerate deleveraging, diversify its investor base, and further strengthens its financial position.”
As VistaJet Global worked to close the deals last month, S&P Global released its revised outlook for the business jet operator. “Vista Global's 2024 results improved year on year but not as much as we had anticipated,” reads a March 18 update from the ratings agency. “Demand for private charter flights continued to be softer than anticipated across all regions, although we understand that Vista Global outperformed the broader market.”
Speaking to Bloomberg TV last week, VistaJet Global chairman Thomas Flohr said the business jet market was down about 3-4% worldwide over the past 12 months. However, he said Asia was a bright spot, with the market there growing by about 15% last year on the back of demand for long-haul aircraft such as the Global 7500, which can fly between Asia and the United States or Asia and western Europe nonstop.
“It’s long haul that is really holding foot for us,” he said.
VistaJet and XOJET use a membership model to offer customers access to around 360 business jets worldwide.
