New Venture Will Offer Financing Solutions for Corporate Jets

Global Jet Capital says it has been evaluating the corporate aircraft market for the past three years and that, because conventional lending sources have backed away from jet financing, the conditions are ideal for its asset-based structured financing model. The company will provide leasing and lending opportunities for large-cabin, long-range business jets and has the capacity to fund more than $2 billion in aircraft financing.

The Pillsbury team, led by Finance partner Tom Zimmer, will represent the new venture on its financing and leasing transactions for corporate jets. The members of the Pillsbury team who have assisted on this engagement include Corporate & Securities partners Patrick J. Devine and James L. Kelly, Executive Compensation & Benefits partner Scott E. Landau and senior associate Bradley A. Benedict, Tax partner Harsha Reddy, Finance associate Dominic E. Pearson and summer associate Melisa Olmos.

Global Jet Capital's launch comes as sales of private jets are on the rise after sharply declining during the recession. The Recorder reports that sales to businesses and individual buyers have increased this year, and Pillsbury's Zimmer commented on the resulting increase in work for aviation lawyers.

"You need to have a strong aircraft finance practice already, and you need to know the industry," he said. "We knew this market would come back. Commercial banks are back in.”

Zimmer added that a trend toward the use of long-range jets and and recent adoption of international aircraft registration protocols are helping drive the industry's growth.