Hawaiian details A330 commercial debt financings

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Honolulu-based Hawaiian Airlines has provided further details on the financing of two new Airbus A330-200 aircraft that were delivered during the second quarter of this year.

The carrier, which borrowed $132 million through two separate secured loan agreements, closed one commercial debt financing under a variable rate while a second aircraft was financed with debt at a fixed rate, says Hawaiian in a filing.

The loan agreements have a 10-year term.

One loan agreement, with a principal borrowing of $67 million, bears interest under a 3.88% variable-rate (at 30 June 2013) with a $7 million balloon payment due at maturity.

The second loan agreement, with a principal borrowing of $65 million, bears interest under a 5.74% fixed-rate with a $10 million balloon payment due at maturity.

The carrier also financed one new delivery in April under a sale and leaseback agreement with Hong Kong Aviation Capital.

Hawaiian's next A330 delivery is planned for November this year and the aircraft will be financed along with another five A330s joining through October 2014, via the capital markets. The carrier closed a $444.5 million secured enhanced equipment trust certificate (EETC) issue for six A330-200s last month.

The 2013-1 notes are split between a $328.3 million A senior tranche with a July 2027 maturity and a $116.3 million B tranche with a July 2023 maturity. The A tranche has a 3.9% coupon while the B tranche was priced at 4.95%.

The initial loan to aircraft value ratios are 52.8% for the A notes and 71.5% for the B notes.

Hawaiian operates 13 A330-200s along with 15 Boeing 767-300ERs, 18 717s and one ATR 42 according to Flightglobal's Ascend Online database. It has orders for nine A330s, including the six that were financed with the EETC, and six A350-800s.