United Airlines priced over $1 billion of aircraft enhanced equipment trust certificates (EETCs), according to deal documents.
EETCs are backed both by aircrafts and by the credits of the owner of the aircraft. Credit Suisse and Morgan Stanley are the lead bookrunners on the deal, United Airlines 2014-2.
A $823 million 2026 senior tranche with an average life of 8.8 years priced to yield 3.75%. A $238 million 2022 B-tranche with an average life of 5.9 years priced at 4.625%. Standard & Poor’s and Fitch Ratings are expected to assign ratings of A-’/ BB+’ to the class A notes and A’/ BB+’ to the class B notes.
The notes are secured by 15 new Boeing aircraft and 12 new Embraer aircraft scheduled for delivery from November 2014 to July 2015, according to a deal prospectus.
The deal is the second largest EETC in recent history (second to the American 2013-2 transaction). That deal offered a single class of senior notes worth $1.4 billion with a 4.95% coupon, according to an American Airlines press release.