United Airlines launched a $929.4 million enhanced equipment trust certificates (EETC) issue for 21 Boeing aircraft, as it fills its financing needs for the rest of the year.
The 2013-1 secured debt is split between a $720.3 million class A tranche with a final maturity in February 2027 and a $209 million subordinate class B tranche with a final maturity of February 2023, according to a prospectus filed with the US Securities and Exchange Commission today.
The initial loan to value ratios are 55.1% for the A notes and 71% for the B notes.
The debt is secured by 18 737-900ERs and three 787-8s that will delivered between this October and June 2014. United says that these will be selected from 24 737s and four 787s that it has scheduled to be delivered during the period.
The Chicago-based carrier disclosed that it needed financing for 10 aircraft deliveries in the second half in its second quarter financial statements.
Fitch Ratings rates the A notes A and the B notes BB+.
Credit Suisse, Citi, Deutsche Bank, Goldman Sachs and Morgan Stanley are bookrunners, and Credit Agricole and Natixis are co-managers. Wilmington Trust is trustee.