Continental Airlines - part of United Continental Holdings - indicated in a new capital markets financing that its average new Boeing 787-8 delivery is priced in the $125-127 million range.
The carrier asked three independent appraisers Aircraft Information Services (AISI), BK Associates and Morten Beyer & Agnew to provide adjusted base value opinions on four Boeing 787s as part of its $844 million pass through certificates, series 2012-2.
Two 787-8s are scheduled for December this year. AISI says the base value is $124.8 million, BK Associates values the future delivery at $123.5 million, while MBA is the highest of the three appraisers with $126.9 million.
In March this year, the same appraisers gave their opinion on a 787-8 with a September delivery. AISI opined that the aircraft had a $120.8 million base value, while a November aircraft carried a $121.2 million valuation. BK Associates was the highest of the three appraisers with quotes above the $130 million mark. The firm valued a September delivery at $133.5 million while a November aircraft carried a $134 million valuation.
MBA said the September delivery had a $127.9 million valuation, while a November-built aircraft had a $128.3 million appraisal.
As part of Continental's EETC, which came to market last week, a July 2013 delivery is valued at $126.3 million by AISI, $125 million by BK Associates and $128.4 million by MBA.
The last 787, under the financing, is a delivery scheduled for September 2013. BK Associates is again the lowest of the three appraisers with a $125 million base value. AISI values the aircraft at $126.7 million, while MBA says the base value is $128.8 million.
AISI says a September 2012 delivery was valued at $120.8 million, while a November aircraft carried a $121.2 million new base value valuation.
The 787-8 aircraft are equipped with GEnx-1B70 engines, at 502,500lb maximum take off weight and are capable of 330 minute of extended range twin operations missions.
The series 2012-2 issue is split between $711.6 million in senior class A notes and $132.3 million in class B notes. Class A carries a 4% coupon and matures on 29 April 2026. It has an initial loan value of 55%. Class B carries a 5.5% coupon and matures on 29 April 2022. It has an initial loan value of 65.2%.
Credit Suisse and Morgan Stanley are lead bookrunners and joint structuring agents, Citi, Deutsche, Goldman Sachs and Jeffries are bookrunners, and Natixis is manager of the issue. Wilmington Trust is the trustee. Hughes Hubbard & Reed are legal counsel.