Financing Commitment From Franklin Square's BDCs Integral To Funding The Transaction

Global Jet Capital, a company providing leasing and lending solutions for large-cabin, long-range private jets, has signed an agreement to purchase approximately $2.5 billion in net assets from GE Capital's Corporate Aircraft portfolio in the Americas.

The portfolio has adhered to the most comprehensive underwriting and collateral evaluation practices and it has industry leading documentation and collateral securing processes.

In addition to GE's aircraft loan and lease portfolio, the GE Capital Corporate Aircraft team will join the Global Jet Capital organization.

Global Jet Capital, which was launched last year, is capitalized by investment funds managed by Franklin Square Capital Partners (sub-advised by GSO Capital Partners, a Blackstone company); The Carlyle Group; and AE Industrial Partners.

The company's current management team and executive committee is comprised of leaders from business jet manufacturers, maintenance and service providers and leading financial institutions who have served the private aircraft industry for a combined 200-plus years and have completed over 3,500 aircraft transactions.

A portion of the committed financing for the transaction was provided by FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III) and FS Energy & Power Fund (FSEP), BDCs managed by affiliates of Franklin Square and sub-advised by GSO Capital Partners LP (GSO) or its affiliates.

"This transaction is key to the execution of Global Jet's growth strategy," said Michael C. Forman, Chairman and Chief Executive Officer of Franklin Square. "We are pleased that the scale of our BDC platform enabled us to support Global Jet in an acquisition of this size."

"This transaction demonstrates the vision and determination of our partnership group to build the leading corporate aircraft financing platform in the world. We have a uniquely talented management team and unparalleled financial resources," commented Marc Baliotti, Managing Director at GSO.

Shawn Vick, Executive Director of Global Jet Capital said, "We are investing heavily in growing the business both organically and through strategic acquisitions such as this one with GE. This is a prime example of our industry expertise and investment capital coming together to evaluate and identify an opportunity to expand the business in a disciplined, carefully measured way."

"We are pleased to sell our Corporate Aircraft financing portfolio to Global Jet Capital, a buyer that is fully committed to investing and growing the business," said Keith Sherin, GE Capital chairman and CEO. "We know our customers will benefit from the combined strength and expertise of the Global Jet Capital team and will continue to receive the high level of service they have come to expect from us."

The transaction is expected to close in stages over the next several months, subject to customary regulatory and other approvals.

(Source: Franklin Square news release)

FMI: www.fsinvestmentcorp.com, www.globaljetcapital.com