VistaJet, XO parent Vista Global in 'late-stage' of $800 million raise

Following its November report, debt market intelligence website 9fin says Vista Global is in ‘late-stage’ negotiations to complete its convertible preferred equity raise.

By Doug Gollan, 4 hours ago

Vistajet XO

Vista Global, the parent of prominent private jet flight providers VistaJet and XO, is in “late-stage negotiations for a proposed convertible preferred equity raise.”

The news from debt-market intelligence website 9fin follows its November 2024 report that Vista Global was working with Jefferies on a “potential preferred equity raise.”

Per today’s report from 9fin:

The deal is expected to be around $800 million, with pricing in the mid-teens and a multiple on invested capital of at least 2x

The money would “boost free cash flow by funding principal payments on VistaJet’s aircraft financing arrangements.”

A Vista Global spokesperson says, “We would not comment on rumors.”

RRJ Capital and Vista Global?

According to the 9fin, the raise is being led by Singapore-based RRJ Capital.

Citi and Jefferies are supporting Vista Global.

Per its website, RRJ Capital was founded in 2011.

Its “strategic focus” is healthcare, financial institutions, technology, and logistics.

RRJ and its affiliates “manage approximately US$16 billion of long-term capital.”

Co-Chairman Charles Ong was previously chief investment and strategy officer at Singapore state-owned investor Temasek Holdings Pte.

Its chairman, Richard Ong, the brother of Charles, was previously a senior executive with Goldman Sachs.

Earlier this month, Bloomberg reported that RRJ Capital was part of a consortium of investors participating in a $1 billion raise by Malaysian energy infrastructure firm Yinson Holdings Bhd.

Last year, 9fin reported, “The size of the potential (Vista Global) deal could be between $600m and $1bn, according to sources. Proceeds would be used, among other things, to help fund amortization payments on the company’s aircraft leases.”

It added, “While it’s been clear for some time that VistaJet needs to raise cash, the founder’s large ownership stake has been a significant factor in discussions around how such a capital raise should be structured.”

Vista’s founder and chairman, Thomas Flohr, is believed to hold over 80% of the company.

Last year’s 9fin report called VistaJet “very investible” and added, “it could ‘easily’ find a buyer for a minority equity stake if it wanted; however, such a deal would dilute existing shareholders.”

Money, Money, Money

Through last June, Vista Global ranked as the third-largest fractional/charter operator in the U.S. per ARGUS Traqpak.

In December, number two, Flexjet, raised $550 million via an unsecured bond offering.

9fin described the J.P. Morgan-led Flexjet offering as “massively oversubscribed.”

Fourth-place Wheels Up obtained $332 million from Bank of America in November with credit support from Delta Air Lines.

Vista Global finances

Privately held Vista’s finances have been publicly scrutinized since a May 2023 story in the Financial Times.

The story highlighted increasing debt, net losses, and deferred revenues to cash ratio.

The FT story’s material largely came from a 512-page bond prospectus, in which Vista Global raised $500 million.

Flohr answered the criticisms on CNBC, saying the company was highly profitable on an EBITDA basis, attributing the debt to funding its expansion and having sufficient cash to fund member flights.

Since 2018, it has bought operators XOJet Aviation, Jet Edge, Red Wing Aeroplane, Air Hamburg, and Talon Air, plus brokers JetSmarter, Camber, and Apollo Jets.