United issues B trance to its Series 2018-1 EETC

Eleanor Steed
By Eleanor Steed May 15, 2018 15:28

United issues B trance to its Series 2018-1 EETC

United Airlines has issued a B tranche of notes as an addition to its Series 2018-1 enhanced equipment trust certificates issuance earlier this year.

The $225.7 million B notes, rated BBB by Fitch, were issued at par with a coupon of 4.60%. The class B certificates have an initial expected tenor of 7.8 years and a weighted average life of 5.4 years.

The notes are junior to the AA and A notes previously offered to the market, which are secured on a portfolio of 16 aircraft – 13 of which have been delivered and financed with the proceeds from the earlier issuance. The balance of the proceeds from the issuance of the Class B certificates will initially be held in escrow and will be used to acquire the three remaining aircraft yet to be delivered.

Credit Suisse and Citi are joint structuring agents and lead bookrunners with Goldman Sachs. Bookrunners are Deutsche Bank, Morgan Stanley, Barclays, BofA Merrill Lynch, BNP Paribas, CA-CIB, JPMorgan, Standard Chartered and Wells Fargo.

Eleanor Steed
By Eleanor Steed May 15, 2018 15:28