US Airways priced two tranches of enhanced equipment trust certificates totaling $819.61 million, according to a pricing document filed with US Securities and Exchange Commission.
Moody’s Investors Service, Standard & Poor’s and Fitch Ratings rated the deal. The $620 million, class A notes, ith an average life maturity of 8.5-years, ated ‘Ba1’/ ‘BBB’/ ‘A-’; priced with fixed rate coupon of 3.95%. The $199 million, 'B1'/ 'B+'/ 'BBB+', 7.2-year notes; priced with a foxed rate coupon of 5.37%. According to an investor presentation, a class C tranche may be offered once the deal is closed.
The deal is backed by 14 new A321-200 aircrafts that are scheduled for delivery between Sept. 2013 and June 2014; and 4 new A330-200 aircrafts that will be delivered between Dec. 2013 and May 2014.
Goldman Sachs, Citigroup and Morgan Stanley are lead bookrunners on the deal. Barclays, BofA Merrill Lynch and Natixis are co-managers on the deal.
US Airways announced a merger with American Airlines earlier this year. In March, American Airlines priced its EETCs. The airline paid a fixed rate of 4% for the $506.7 million, 'BBB+' rated, class A notes; and a fixed rate of 5.625% for the $156.6 million 'B'–rated, class B notes, according to a regulatory filing.
Fitch said in its presale report on the deal that it expected to upgrade the notes once American exited bankruptcy and completed its proposed merger with US Airways.
