United Airlines is preparing to issue $949 million of aircraft enhanced equipment trust certificates (EETC), according to a filing with the Securities and Exchange Commisson.
EETCs are backed both by aircrafts and by the credits of the owner of the aircraft.
Credit Suisse and Morgan Stanleyare the lead bookrunners on the deal, dubbed United Airlines 2014-1 EETC. Deutsche Bank Securities, Goldman Sachs, and Citigroup. Credit Agricole Securities and Barclays are co-managers on the deal.
The certificates are backed by perfected first priority security interest in 25 new Boeing aircrafts scheduled for delivery between March and December of 2014, that will be purchased by United using a separate trust established for each class of certificates.
The deal will offer two classes of note assigned preliminary ratings by Fitch Ratings: an 8.8-years, A’-rated, class A notes, and BB+’-rated, 5.9-years, class B notes.
