Kinston-based flyExclusive, which offers private jet service, is going public in a combination with a New York special-purpose acquisition company, or SPAC.
EG Acquisition is sponsored by EnTrust Global and GMF Capital. It will combine with flyExclusive to create a New York Stock Exchange-listed company led by founder and CEO Jim Segrave.
The move will enable flyExclusive to continue its rapid growth and become a fully vertically integrated private aviation company, according to a press release.
In addition, unnamed sovereign wealth and U.S. institutional investors are providing $85 million to flyExclusive by acquiring convertible notes that will convert to shares valued at $10 each. The money will mainly be used for buying more aircraft.
The transaction values flyExclusive at $600 million and is expected to provide up to $310 million in proceeds. Segrave and other flyExclusive owners will retain 60% ownership, according to the release.
FlyExclusive estimates it will have revenue this year of $360 million and pre-tax operating earnings of $32 million, then grow to $522 million and $64 million, respectively, in 2023.
The company employs about 800 people and operates 90 jets. It flew about 46,000 hours last year, a 46% increase from 2020. This year it is averaging about 5,000 hours per month.
The boards of directors of EG Acquisition Corp. and flyExclusive have approved the proposed transaction, which is expected to close in early 2023.
Chairman and CEO Gregg Hymowitz founded EnTrust Global in 1997. The investment firm has about $18 billion in assets and has invested nearly $14 billion in about 160 transactions.
GMF Capital is a private investment platform founded by Gary Fegel in 2013, manages more than $1.5 billion in assets.