Rizvi Traverse Management, a private equity firm specialising in opportunistic investments, and Starwood Capital Group Global, a private investment firm focused on real estate and energy infrastructure, have led the recapitalisation of Key Air, a provider of aircraft management and executive charter services.
Under the terms of the transaction, Rizvi Traverse converted a portion of Key Air’s outstanding indebtedness, which it acquired from Key Air’s lenders in December 2009, into equity.
Starwood has acquired an approximately 50 per cent interest in the remaining debt and converted equity.
As part of the transaction, both Rizvi Traverse and Starwood have committed to support the future growth of Key Air and help ensure its continuing financial strength.
"This transaction provides a right-sized balance sheet for Key Air, further strengthening Key Air’s position as national player in the managed aircraft and charter businesses as well as a premier FBO services provider," says Suhail Rizvi of Rizvi Traverse Management.
"We are excited about participating in the next chapter of Key Air’s growth, including the expansion of the company’s FBO operations at Waterbury-Oxford Airport as well as the national managed aircraft platform," says Barry Sternlicht, chairman and chief executive of Starwood Capital. "The company’s long history of providing safe, unparalleled service to its customers and extraordinary growth opportunities that exist in this space made this an attractive investment opportunity for Starwood and we are pleased to be working in partnership with Rizvi Traverse to help provide the company with the financial strength to realize its full potential."
"Key Air is excited about the recapitalisation and energised to have the support and strong financial backing of both Rizvi Traverse and Starwood Capital. This transaction will allow Key Air to grow and leverage our existing platform while assuring continued financial stability," adds Bob Marinace, chief executive of Key Air.
