Expect friendly skies over the next couple months as US Airways, Continental, Northwest and Federal Express all look to fire their jets in the aircraft ABS sector by bringing over $3 billion in volume to the market.
Arlington Va.-based US Airways will touch down in one to two months with an EETC debt financing of approximately $1 billion that will fund the company's aircraft purchases and deliveries for the latter half of 1999 and the early part of 2000.
Credit Suisse First Boston will lead-manage the transaction.
The funds will go toward the purchase of a number of Airbus aircraft that will include A319, A320 and A330 jets.
The deal should round out deliveries for the calendar year, as the company issued a similar EETC in December to finance deliveries coming due for July and August.
Northwest is also expected to be back in the market with an EETC jet deal following its 1999-1 co-led offering from Morgan Stanley Dean Witter and Credit Suisse First Boston.
The Eagan, Minn.-based airliner is expected to offer upwards of $1.5 billion in bonds. Ratings on the last deal ranged from double-A on the 13-year piece to triple-B on the five-year tranche.
Memphis-based Federal Express has filed to securitize $100 million to $300 million of leased aircraft equipment and pass-through certificates. FedEx has 625 total aircraft worldwide.
The "world's largest courier" has a fleet of 26 McDonnell Douglas MD-11s (33 on order); 30 Airbus A300s (6 on order); 39 Airbus A310s; 74 McDonnell Douglas DC-10s (21 on order); 163 Boeing 727s; 261 Cessna 208s; 32 Fokker F-27s; and a further order of 50 Ayres LM 200. There's no word yet on whether FedEx is looking to launch an EETC.
Also, Continental is also expected to arrive with an EETC in the $900 million range in the next few months.
- SK
