On Oct. 17, flyExclusive, a leading provider of premium private jet charter experiences, and EG Acquisition Corp. (NYSE: EGGF), a Special Purpose Acquisition Company (SPAC) sponsored by EnTrust Global and GMF Capital, entered into a definitive business combination agreement. The next day, flyExclusive entered into a purchase agreement with Textron Aviation for up to 14 additional Cessna Citation business jets.
In the business combination agreement, the combined business will be called flyExclusive and is expected to be listed on the New York Stock Exchange. flyExclusive founder and CEO Jim Segrave will lead the combined company.
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Once completed the transaction will provide capital for flyExclusive to continue its growth, better serve customers and execute its strategic plan to become the nation’s first fully vertically integrated private aviation company, according to a statement from the company.
Under the terms of the definitive business combination agreement, the transaction values flyExclusive at a pre-transaction equity value of $600 million and is expected to provide up to $310 million in proceeds, including $85 million of committed convertible notes and $225 million of SPAC cash in trust assuming no redemptions. No additional funding beyond the $85 million of already committed convertible notes is required for the business combination to close.
In the deal with Textron Aviation, flyExclusive has agreed to purchase eight Cessna Citation XLS Gen2 aircraft to be delivered in 2024, and up to six Citation Longitudes, with initial deliveries of the first two Longitude aircraft expected in 2025.
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Also, flyExclusive has exercised its option to purchase an additional five Citation CJ3+ aircraft from an order earlier this year of up to 30 CJ3+ jets. These aircraft are expected to be delivered in 2024.
“We’re proud that flyExclusive, a growing fractional operator, has chosen the Citation XLS Gen2 and Citation Longitude to offer comfortable, spacious, and unforgettable experiences to their customers entering business aviation,” Textron Aviation President & CEO Ron Draper said. “We appreciate their confidence in Textron Aviation as they continue to expand their already impressive Citation fleet and look forward to continuing our relationship for years to come.”
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“This agreement reinforces flyExclusive’s rapid growth and further bolsters the company’s offerings in the fractional space,” flyExclusive Chairman and CEO Jim Segrave said. “We continue to elevate the private flying experience, delivering consistent, reliable, and world-class service for our customers. We are proud to deepen our relationship with Textron Aviation and support high-quality, American manufacturing. We appreciate Textron Aviation’s support as we continue to grow into one of the largest private jet charter operators in the industry.”
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