US Airways has closed its $100 million enhanced equipment trust certificate (EETC) notes, as it builds up debt ahead of its proposed merger with American Airlines.
The 2012-2 C debt is a subordinate tranche to the Tempe, Arizona-based airline's $546.2 million A and B tranches that closed in December. It is backed by seven new Airbus A321s and four Airbus A330-200s. Two of the A321s were delivered in May.
US Airways chief financial officer Derek Kerr told Flightglobal in April that the airline planned to build up its cash balances ahead of the proposed merger to make sure "that there is no hiccup". The airline anticipates $1.2 billion in merger related expenses.
The C tranche carries a 5.45% coupon with a spread of 454bp over five-year US Treasury bonds. It closed on 6 June and matures in 2018.
The notes are rated BB- by Fitch Ratings, B3 by Moody's and B by Standard & Poor's.
Goldman Sachs is the sole bookrunner. Wilmington Trust is trustee.