Spirit Airlines in the market with a $421 million EETC

Eleanor Steed
By Eleanor Steed November 14, 2017 17:37

Spirit Airlines in the market with a $421 million EETC

Spirit Airlines has launched three tranches of $420.5 million enhanced equipment trust certificates (EETC) SAVE 2017-1. The $247.1 million AA class of notes, which amortised over 12.2 years, have an initial loan to value (LTV) of 41.1% and an initial average life of 8.6 years, are rated AA by S&P and Fitch. The $82.366 million A notes, that amortise over 12.2 years, are rated A by both rating agencies, with a LTV of 54.8% and an average life of 8.6 years. The $91.035million B notes are rated BBB- by S&P and BBB+ by Fitch and have an average life of 5.4 years, amortise over 8.2 years and have an LTV of 68.3%.

The notes are secured on a portfolio of 12 new Airbus aircraft to be delivered to Spirit Airlines: five new A321-200ceos will be delivered between February 2018 and March 2018, and seven new A320-200ceos to be delivered between next month (Dec. 2017) and October 2018.

Liquidity facilities are provided for all three tranches of notes by Commonwealth Bank of Australia, which is also acting as the depositary.

Joint structuring agents and joint lead bookrunners are Morgan Stanley and Citi. Joint bookrunners are Goldman Sachs and Barclays.

Eleanor Steed
By Eleanor Steed November 14, 2017 17:37