VistaJet (Malta) (VJT, Malta International) says it is in a strong financial position after securing USD600 million in equity and a further USD700 million via a capital raising. The business jet operator said in a press statement that the financial restructuring would save it USD160 million annually in debt repayments. VistaJet also said the restructuring should reduce scrutiny on its debt levels.
"The new capital injection strengthens the company’s financial position and sends a clear message to the market about investor confidence in Vista’s business model and growth trajectory," the statement reads.
VistaJet says USD500 million of the funds raised will go towards debt reduction, and the remainder will be used to restructure the company’s current financial tools, reducing its discount rate and generating immediate cash flow.
The operator noted that its subscription-based business model has grown substantially recently, with clients signing three-year deals that provide stable, predictable income streams. "This approach has proven particularly attractive to corporate clients who prefer to invest capital in their core businesses rather than in aviation assets," said CEO Thomas Flohr.
The statement also called out what it named "outside observers who [...] lacked visibility into Vista’s unique business model." The outside observers reference referred to external interest in VistaJet's debt structure and “critics commenting on our numbers without knowing how our company intimately works.”
However, VistaJet also acknowledged that the business jet industry typically operates with limited financial transparency, making it difficult for outsiders to assess business models and financial structures accurately. The company says its openness about the restructuring is designed to tackle this.
VisaJet said many of its recent legal challenges, some of which the company has won, was "unneccessary noise". With many of those lawsuits concluded, the VistaJet statement says it hopes it can concentrate on growing and improving its core subscription business.
