Doric prices EETC; listing set for tomorrow

Victoria
By Victoria July 1, 2013 14:12

Doric prices EETC; listing set for tomorrow

Doric second $630 million enhanced equipment trust certificate (EETC) for four A380s on lease to Emirates priced late last week. In an unsettled market the two tranches priced close the 2012 deal.

The $462million Class A certificates priced at 5.250% with a maturity of 9.9 years, a weighted average life (WAL) of 5.7 and LTV of 50.6%. The $168 million Class B certificates priced at 6.125% with a 6.4 year maturity, WAL 3.8 and LTV of 69%.

Goldman Sachs was the sole structuring agent and joint bookrunner with Morgan Stanley and Citi. Credit Agricole-CIB provider the liquidity facility, the depository and was also the lead manager.

Clifford Chance provided a legal opinion for Doric Alpha, Hughes Hubbard advised the underwriters, while Milbank acted as legal counsel for Credit Agricole.

The funds raised financed four A380s to be leased to Emirates on four separate twelve-year operating leases.

Compared to the previous deal in 2012, the pricing over midswaps was slightly tighter reflected the comfort investors have with the product and the collateral. For the 2013-1 A tranche the spread over midswaps was 342 basis points (bps), for the previous year it was 380bps. For the B slice the midswaps spread was 493bps, compared to 582bps on the previous deal.

Victoria
By Victoria July 1, 2013 14:12
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