United Continental Holdings-subsidiary Continental Airlines has priced its $425 million secured enhanced equipment trust certificates (EETC) issue.
The 2012-3 class C subordinate debt carries a coupon of 6.125%. This is 62.5bps premium over the 5.5% interest rate on the Chicago-based carrier's $132.3 million 2012-2 class B issue that closed in October.
The notes are subordinate to both Continental's 2012-1 and 2012-2 EETC issues.
The 2012-3C debt partially finances 35 Boeing 737-900ER and seven Boeing 787-8 aircraft that were previously financed by the 2012-1 and 2012-2 deals. It has a 29 April 2018 bullet maturity and an initial loan-to-value ratio of 82%.
Fitch Ratings rates the 2012-3C issue BB-, Moody's B1 and Standard & Poor's (S&P) B+.
Credit Suisse, Goldman Sachs and Morgan Stanley are lead bookrunners. Citi and Deutsche Bank are bookrunners, and Barclays Capital, Bank of America Merrill Lynch and JP Morgan co-managers.
Wilmington Trust is trustee, Natixis depositary and US Bank escrow agent.