The pricing on the senior tranche of Hawaiian Airlines' $444.5 million secured enhanced equipment trust certificate (EETC) issue has set a new low for the market, beating recent issues from established players in the market.
The $328.3 million senior A tranche achieved a coupon of 3.9% and the $116.3 million B tranche achieved a 4.95% coupon on 14 May. It is backed by six new Airbus A330-200s with deliveries from this November through October 2014.
US Airways set the previous recent market low with a 3.95% interest rate on the $620.1 million senior A tranche of its 2013-1 EETC issue in April. The $199.5 million B tranche carries a 5.375% interest rate. The deal is backed by 14 Airbus A321 and four A330-200 deliveries.
The 2013-1 EETC issue is Honolulu-based Hawaiian's first in the market.
The A tranche has a July 2027 maturity and is rated Ba1/BBB+/A- by Moody's, Standard & Poor's (S&P) and Fitch Ratings, respectively. The B tranche has a July 2023 maturity and is rated B1/BB-/BB by the agencies.
Citi, Goldman Sachs and Morgan Stanley acted as joint bookrunners on the 2013-1 deal. Natixis was liquidity provider and depositary, and JP Morgan and Wells Fargo were co-managers. Wilmington Trust is the trustee.