Moody's Investors Service has rated Doric's second enhanced equipment trust certificate (EETC) offering, Doric Nimrod Air Finance Alpha (DNA Alpha), that will fund the purchase of four new Airbus A380 aircraft on lease to Emirate Airline.
Moody's Investors Service assigned "A3" and "Baa3" ratings, respectively, to the Class A and Class B pass through certificates, series 2013-1.
The balance of the aircraft purchase price not funded by the notes will be funded by equity from DNA Alpha's publicly listed parent, DNA III.
DNA III, which will be publicly listed on the London Stock Exchange and the Channel Island Stock Exchange, says Moody's. Doric will capitalize DNA Alpha "on or about 2 July 2013" with the net proceeds of its recent primary offering of shares.
The four A380s are scheduled to be delivered to Emirates in 2013 with initial 10-year terms that are set to expire "on or after the scheduled maturity date of the A-tranche certificates", says Moody's.
Crédit Agricole, acting via its New York Branch, will provide separate committed liquidity facilities sized to meet the next four semi-annual interest payments.
DNA Alpha tapped the EETC market last year in a $587.5 million transaction. The $434 million Class A certificates carry an annual interest rate of 5.125% and have a final expected distribution date of 30 November 2022. The $154 million Class B certificates have an annual interest rate of 6.5% and have a final expected distribution date of 30 May 2019.
Goldman Sachs acted as sole structuring agent and sole bookrunner on the financing. The proceeds from the offerings financed the acquisition of four A380s delivered to Emirates between September and November 2012.