Istanbul attack; deals for Aircastle and American

Dino D'Amore
By Dino D'Amore June 29, 2016 20:38

Istanbul attack; deals for Aircastle and American

Terrorists attacked Atatürk Airport Istanbul in Turkey last night, killing 41 and injuring 239 in a triple suicide attack (see European News below). Our thoughts are with the victims and their families.

This week, American Airlines has concluded a successful B tranche to its Series 2016-2 issued in May enhanced equipment trust certificates (EETC), while Aircastle has secured a new $400 million secured facility.

American Airlines priced $226,949,000 of Class B notes as an additional issuance from the company’s Series 2016-2 series of EETC notes, which included Class AA certificates and Class A certificates closed on May 16, 2016. The B certificates will have an interest rate of 4.375% per annum and a final expected distribution date of June 15, 2024. Proceeds from the issuance will finance American’s purchase of five Airbus aircraft and three Boeing aircraft scheduled to be delivered from June 2016 to August 2016 and to use the remaining balance for general corporate purposes.

The notes were sold to non-US investors, which brought in many new names to the EETC market. This deal will be examined in more detail in the next issue of Airline Economics.

Aircastle has entered into a new $400.5 million term facility secured by 17 aircraft. The facility has a maturity of seven years and includes an accordion feature allowing for $67.5 million in additional future funding. Funding of the facility will take place through several draw-downs, with the first one, for $167.3 million, having taken place yesterday.

BNP Paribas and Credit Agricole Corporate and Investment Bank acted as joint bookrunners of the facility, they were also joint lead arrangers with Bank of Tokyo-Mitsubishi UFJ. SGBT Asset Based Funding acted as arranger and co-document agent; ING Bank and Columbia State Bank were lenders. BNP Paribas also acts as administrative agent and security trustee.

Dino D'Amore
By Dino D'Amore June 29, 2016 20:38