Blackstone Credit & Insurance Announces Over $1 Billion in New Financings to Support Recapitalization of Jet Support Services, Inc., a Portfolio Company of GTCR and Genstar Capital

Rhea-AI Summary

Blackstone Credit & Insurance has announced over $1 billion in new financings to support the recapitalization of Jet Support Services, Inc. (JSSI), the world's largest independent provider of hourly cost maintenance programs for business aircraft. This brings Blackstone's total financing for JSSI to over $1.8 billion in debt financing and common equity investment.

JSSI, a portfolio company of private equity firms GTCR and Genstar Capital, will use these strategic financings to strengthen its capital structure, enhance operational capabilities, and continue growth in the business aviation sector. Blackstone has been investing in JSSI since 2015, demonstrating its commitment to growing with companies in its credit portfolio.

Positive

• Secured over $1 billion in new financing
• Total financing from Blackstone reaches $1.8 billion including debt and equity
• Strategic capital structure strengthening
• Long-term partnership with major investors since 2015

Negative

• None.

Insights

Financial Analyst

The $1 billion recapitalization of JSSI represents a significant financial milestone that strengthens the company's market position in the aviation maintenance sector. The total Blackstone financing now exceeding $1.8 billion, including both debt and equity components, demonstrates strong institutional confidence in JSSI's business model and growth prospects.

This deal structure, combining debt financing with equity investment, provides JSSI with both operational flexibility and strategic alignment with major private equity players. The participation of GTCR and Genstar Capital, known for their expertise in business services and technology investments, adds another layer of credibility to JSSI's growth strategy.

The recapitalization should enhance JSSI's competitive position in the business aviation maintenance sector, potentially leading to market share expansion and improved operational efficiencies. For Blackstone (BX), this transaction aligns with their strategy of deepening relationships with portfolio companies and demonstrates their ability to deploy capital across multiple investment vehicles.

Market Research Analyst

The business aviation maintenance sector is experiencing robust growth, driven by increasing private aviation activity and aging aircraft fleets requiring more maintenance services. JSSI's position as the largest independent provider of hourly cost maintenance programs gives it significant competitive advantages in this expanding market.

The recapitalization comes at a strategic time when the aviation services sector is seeing increased demand for predictable maintenance costs and technological solutions. JSSI's ability to secure substantial financing from Blackstone indicates strong future growth potential and market opportunities. The backing of multiple private equity firms suggests potential for strategic acquisitions or expansion into adjacent services.

NEW YORK--(BUSINESS WIRE)-- Blackstone Credit & Insurance (“Blackstone”) and Jet Support Services, Inc. (“JSSI”) today announced over $1 billion in new financings to support the recapitalization of JSSI, the world’s largest independent provider of hourly cost maintenance programs for business aircraft engines, auxiliary power units, and airframes. Funds managed by Blackstone have now provided over $1.8 billion of debt financing and an investment in the common equity in a series of financings for JSSI, a portfolio company of leading private equity firms GTCR and Genstar Capital.

These strategic financings will enable JSSI to strengthen its capital structure, enhance its operational capabilities and continue its growth trajectory in the business aviation sector. Blackstone has been a long-time investor in JSSI since 2015, and these transactions exemplify the firm’s commitment to growing with companies in its credit portfolio.

“JSSI has consistently demonstrated its leadership in the aviation maintenance and technology sector, and we are proud to continue our capital support for them and to partner in the equity with premier sponsors like GTCR and Genstar,” said Brad Colman, Senior Managing Director at Blackstone. “These financings not only underscore our longstanding investment in JSSI but also highlight how Blackstone can grow with world-class companies as they mature. Our position as a scaled capital provider allows us to deliver tailored solutions for both sponsors and corporates.”

“We have enjoyed a great partnership with Blackstone for close to 10 years. We’re excited about the opportunities this latest transaction presents,” said Neil Book, President and CEO of JSSI. “These financings will enable us to further enhance our capabilities, accelerate growth, and deliver even greater value to our customers.”

About Blackstone Credit & Insurance

Blackstone Credit & Insurance (“BXCI”) is one of the world’s leading credit investors. Our investments span the credit markets, including private investment grade, asset based lending, public investment grade and high yield, sustainable resources, infrastructure debt, collateralized loan obligations, direct lending and opportunistic credit. We seek to generate attractive risk-adjusted returns for institutional and individual investors by offering companies capital needed to strengthen and grow their businesses. BXCI is also a leading provider of investment management services for insurers, helping those companies better deliver for policyholders through our world-class capabilities in investment grade private credit.

About Jet Support Services, Inc. (JSSI)

Founded in 1989 and headquartered in Chicago, JSSI is the leading independent provider of hourly cost maintenance (HCM) programs for business aircraft engines, airframes, and auxiliary power units (APUs). JSSI’s HCM programs cover over 300 different makes and models of business aircraft, including jets, turbo-props and helicopters.

JSSI has constructed a portfolio of complementary business lines that support owners, operators, and maintenance providers across the entire lifecycle of ownership, including parts procurement, maintenance tracking software, aircraft financing, and advisory services. With 6,000+ aircraft supported by maintenance programs and software platforms, JSSI leverages this wealth of data, scale, and innovation to drive cost savings and provide custom solutions that align to the interests of each client, regardless of aircraft platform. Learn more at jetsupport.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210582202/en/

Thomas Clements

646.482.6088

Thomas.Clements@blackstone.com

Source: Blackstone

FAQ

How much new financing did Blackstone (BX) provide to JSSI in 2024?

Blackstone provided over $1 billion in new financings to support JSSI's recapitalization.

What is the total amount Blackstone (BX) has invested in JSSI?

Blackstone has provided over $1.8 billion in total financing to JSSI, including debt financing and common equity investment.

How long has Blackstone (BX) been investing in JSSI?

Blackstone has been a long-time investor in JSSI since 2015.

What will JSSI use the Blackstone (BX) financing for?

The financing will be used to strengthen JSSI's capital structure, enhance operational capabilities, and continue growth in the business aviation sector.