Moody’s assigns B2 to OneSky Flight, loan

Moody’s Investors Service said it assigned B2 ratings to OneSky Flight LLC’s proposed $425 million first lien senior secured term loan.

Proceeds will be used to refinance debt, buy leased core aircraft for $38 million, fund $39 million purchase of aircraft that will be added to the fractional-share program, and pay transaction fees and expenses. The remaining $53 million will be available for general corporate purposes, including buying aircraft from the fractional program to be used in the on-demand charter flight program. The company is expected to extend its $40 million asset-backed (ABL) revolving credit facility, which will remain undrawn at closing, Moody’s said.

The agency also assigned OneSky a B2 corporate family rating and B2-PD probability of default rating.

“OneSky’s B2 CFR favorably considers the company’s established market position in the highly fragmented and competitive U.S. private business aviation market, its portfolio of brands that captures demand across the entire aviation spectrum, significant contracted revenues from a diverse customer base, and limited balance sheet risk," said Oleg Markin, a Moody’s assistant vice president and analyst, in a press release.

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