United Airlines out with B EETC notes

victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 26, 2017 16:36

United Airlines out with B EETC notes

United Airlines intends to raise more than £286 million with a B tranche of notes added to its Series 2016-1 enhanced equipment trust certificates issuance, which comprised both AA and A notes. The junior B certificates, which are rated BBB by Fitch, amortise over 7.9 years, with an 73.0% initial and max loan-to-value ratio and a weighted average life of 5.4 years. The notes have a security interest in 13 Boeing aircraft – one 737-800, three 737-900ERs, two 787-9s, and seven 777-300ERs – that were delivered to United between December 2016 and June 2017.

United has retained the option to add further subordinate classes of debt at its discretion.

Credit Suisse is the sole structuring agent and a joint lead bookrunner with Goldman Sachs and Morgan Stanley. Bookrunners are Citi, Deutsche Bank, Bank of America Merrill Lynch, JP Morgan, BNP Paribas, Credit Agricole-CIB. The 18-month liquidity facility is provided by Commonwealth Bank of Australia.

 

Image: Airbus
victoria@aviationnews-online.com
By victoria@aviationnews-online.com October 26, 2017 16:36