United Airlines is preparing a $929.4 million aircraft enhanced equipment trust certificates (EETC) deal, 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. They are typically offered under a special provision of the U.S. Bankruptcy Code, Section 1110.
The joint-bookrunners on the deal are Credit Suisse, Morgan Stanley, Deutsche Bank Securities, Goldman Sachs, and Citigroup. Credit Agricole Securities and Natixis join them as co-managers.
The certificates are backed by perfected first priority security interest in 21 new Boeing aircrafts scheduled for delivery from October 2013 to June 2014 that will be purchased by United using a separate trust established for each class of certificates.
Series 2013-1 transaction features two tranches: $720.3 million class A notes with an expected final distribution date of August 15, 2025, and $209.1 million subordinate class B notes with an expected final distribution date of August 15, 2021.
The A notes have a weighted average life of 9.1 years and an initial loan-to-value ratio of 55.1%, while the B notes and a weighted average life of 5.9 years and LTV of 71%, according to Fitch Ratings.
The certificates have been rated 'A' and 'BB+', respectively, by Fitch.
Earlier this month two EETC deals, from Doric and British Airways, successfully priced dispite market uncertainty.