Rizvi Traverse and Starwood Recap Key Air

Rizvi Traverse Management and Starwood Capital Group have recapitalized Key Air, a provider of aircraft management, worldwide charter and FBO services. No pricing terms were disclosed.

PRESS RELEASE

Rizvi Traverse Management, LLC, a private equity firm specializing in opportunistic investments, and Starwood Capital Group Global, LP, a leading global private investment firm focused on real estate and energy infrastructure, have announced the successful recapitalization of Key Air, a leading national provider of FBO services and best-in-class aircraft management and worldwide 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% 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,” said 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,” said Barry Sternlicht, Chairman and CEO 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 recapitalization and energized 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,” said Bob Marinace, CEO of Key Air.

About Rizvi Traverse Management, LLC

Rizvi Traverse Management, LLC is a private investment firm with offices in New York, Los Angeles and Birmingham, Michigan. Rizvi Traverse Management, LLC seeks value-oriented investment opportunities across all industries.

About Starwood Capital Group Global, LLC

Starwood Capital is a private, U.S.-based investment firm with a core focus on global real estate.  Since the group’s inception in 1991, the firm, through its various funds, has invested more than $6 billion of equity capital, representing $21 billion in assets. Starwood currently has approximately $14 billion of assets under management. Starwood maintains offices in Greenwich, Atlanta, San Francisco, Washington, D.C., London, Mumbai and Tokyo.  Starwood has invested in nearly every class of real estate on a global basis, including office, retail, residential, senior housing, golf, hotels, resorts and industrial assets.  Starwood and its affiliates have successfully executed an investment strategy that includes building enterprises around core real estate portfolios in both the private and public markets.

About Key Air

For 25 years, Key Air has been an industry leader in aircraft management, worldwide charter and FBO services.  Key Air has Fixed Base Operations and private aviation terminal space in strategic locations nationwide to provide a seamless private air travel experience. With convenient proximity to major U.S. cities like New York, Boston, Minneapolis-St. Paul, Palm Beach and Los Angeles, Key Air can deliver a more efficient and streamlined alternative to the often congested airports in each of these locations. Key Air’s three FBO facilities include: Key Air NY Metro (OXC) in Oxford, CT; Key Air Twin Cities (ANE) just outside Minneapolis-St. Paul, MN; and Key Air South Florida (FPR) in Ft. Pierce, FL.