FlyExclusive announces $25 million equity investment

FlyExclusive said it has entered into a securities purchase agreement with an investment vehicle managed by EnTrust Global.

The purchase covered 25,000 shares of Series A Non-Convertible Redeemable Preferred Stock, a par value of $0.0001 per share at a purchase price of $1,000 per share.

The transaction closed on March 4, 2024, and the company received approximately $25 million in cash proceeds.

The money will be used to fund the working capital for the top-five operator, including aircraft acquisition plans.

Last month, we exclusively reported that FlyExclusive is expanding its super-midsize fleet with new vintage preowned Challenger 350s as part of its fleet modernization efforts.

“We’re thrilled to expand our relationship with EnTrust Global, a partner that recognizes the significant opportunity FlyExclusive has to become the nation’s first vertically integrated private aviation company,” said FlyExclusive Founder and CEO Jim Segrave.

He continues, “Expanding our fleet will allow us to further build out our fractional program and bring greater reliability and convenience to our customers.”

The Series A Preferred Stock accrues dividends beginning on the issue date and ending on the first-year anniversary of the Issue Date at 10% per annum, 12% per annum for the second year, 14% per annum for the third year, and 16% per annum for the fourth year and thereafter.

The dividends will compound annually for the first two years.

On the third annual dividend payment date, FlyExclusive must pay at least 43% of the dividends in cash, and on each subsequent annual dividend payment date, it must pay 100% of the dividends in cash.

In January, FlyExclusive announced a $25.8 million revolving line of credit.

Shares in the newly publicly traded operator ended the day at $18.24.

The 52-week price has ranged from $3.71 to $19.75.