US Airways achieves sub-6% coupon with subordinate EETC

New York
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US Airways priced its $100 million deeply subordinate enhanced equipment trust certificates (EETC) issue at below 6% on 22 May, beating the recent low set by similar tranches.

The 2012-2 C secured notes carry a 5.45% coupon, which is a 454bp spread over five-year US treasury bonds. Close is scheduled for 6 June.

The recent market low was the 6.125% coupon for United Airlines' $425 million 2012-3 C issue that closed this past December.

Tempe, Arizona-based US Airways' five-year notes rank subordinate to the $418.1 million class A and $128.1 million class B debt that closed in December 2012. Class A carries a 4.625% interest rate and B a 6.75% interest rate.

The 2012-2 issue is secured by seven new Airbus A321s and four Airbus A330-200s. Two of the A321s, N152UW and N153UW, were delivered in May.

Fitch Ratings rates the C tranche BB-, Moody's rates it B3 and Standard & Poor's B.

Goldman Sachs is the sole bookrunner.