Today at the European Business Aviation Convention, business aviation
leader XOJET announced financing agreements for up to $2.46 billion to
fund its North American operations and global expansion strategy. This
marks the largest publicly-announced business aircraft financing package
in history. XOJET also announced the proposed launch of a separate joint
venture with investment company Tasameem Real Estate Company, LLC
(Tasameem) to be headquartered in the United Arab Emirates´ capital city of Abu Dhabi.
The equity financing round was advised by Morgan Stanley. Multiple
investors participated in debt and equity financings including global
investors Tasameem, veteran aviation investor TPG, Export Development
Canada (EDC), White Oak Global Advisors, LLC and XOJET founder Paul
Touw. The strength of these financings reflects the high degree of
confidence that XOJET´s investors have in the
company´s U.S. management, proven business
performance and in the growing demand for business aviation services.
$964 million in immediate financing will be made available to XOJET
which has already secured more than $500 million in previous funding.
The remaining $1.5 billion in additional financing will be made
available upon launch of the planned joint venture with Tasameem, which
is expected to occur later this year. XOJET currently has 127 aircraft
and aircraft orders valued at more than $3.1 billion.
XOJET´s global expansion strategy seeks to
capitalize on the escalating worldwide demand for business jet travel.
The joint venture with Tasameem in Abu Dhabi will leverage XOJET´s
innovative operating model, stringent safety standards, and
comprehensive operating experience to bring the company´s
unique value proposition to customers traveling to, from, and within the
Gulf Cooperation Council countries and the greater Middle East region.
This comprehensive financing package will also enable XOJET to be the
first large-scale business jet operator to fund the vast majority of its
own fleet. Traditional models of business aviation have customarily
required the customer to fund the aircraft, or a fraction of the
aircraft. With this comprehensive financing package, XOJET expects to
self-finance its aircraft, removing this burden from its customers and
expanding the breadth of its product offerings.
"The dynamics of a constrained commercial
aviation system combined with the rapid rise of business opportunities
in a global economy are driving historic growth in business aviation," said Paul Touw, CEO of XOJET. "In an
increasingly diversified and worldwide marketplace, business jets are
becoming one of the most important tools for corporate competitive
advantage."
With commercial airline service under strain, business jet travel is
growing at an unprecedented rate. In the United States, the FAA March
2008 forecast predicted average flight growth of 12.2 percent annually
through 2010. The overseas business jet market is growing even more
rapidly, with aircraft manufacturers predicting that more than 50
percent of aircraft demand will come from outside of North America
according to the annual Honeywell Business Jet Forecast.
"XOJET´s business
model is changing the industry as it continues to outperform our
expectations," said David Bonderman, founding
partner of TPG. "We are excited to continue
to fund the company´s growth as it has
assembled a world-class management team that continues to execute
aggressively and successfully."
"This significant financing series has
created one of the strongest balance sheets in the industry," said Eilif Serck-Hanssen, XOJET´s CFO and
president of international operations. "Given
today´s credit markets, the magnitude and
size of these agreements suggests there is always capital for great
ideas and growth markets."
ABOUT XOJET
XOJET, Inc. is a leading provider of global business aviation services
on an all-new fleet of business jets. XOJET launched its service in
January 2006 and has quickly established itself as one of the
fastest-growing business aviation companies on record. The company
which is based in San Carlos, California, has built a fleet that will
reach 127 aircraft worth US$3.1 billion by 2012.
Most recently, XOJET has been recognized with a number of honors
including being named an Aviation Research Group/ U.S. "Model
Program" for its commitment to safety, an Inc.
Magazine "Fastest Growing Company", and a Robb Report "Best of Private Aviation" winner. For more information, visit www.xojet.com.
