Spanish airline Iberia returned to the European market recently with a deal backed by a portfolio of 18 new aircraft. Morgan Stanley Dean Witter arranged the E496.5 million ($582.7 million) deal, called Iberbond 2000, and employed an enhanced equipment trust certificate structure. The structure transfers the planes into an SPV, leases them back to Iberia, and revenues from those leases are used to pay bondholders.

Credit Lyonnaise was brought in as lead manager on the transaction, with support coming from MSDW and Tokyo Mitsubishi International as the co-leads.

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