US Airways launches $100m subordinate EETC

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US Airways launched a $100 million deeply subordinate enhanced equipment trust certificate (EETC) issue today, adding to the $2.1 billion in financing that it has raised in the past week.

The new 2012-2 class C secured notes rank subordinate to the $418.1 million class A and $128.1 million class B debt that closed in December 2012, according to a prospectus filed with the US Securities and Exchange commission today. They mature in June 2018.

The debt is secured by seven new Airbus A321s and four Airbus A330-200s, which also back the senior tranches. Two of the A321s, N152UW and N153UW, were delivered in May.

The initial loan to aircraft value is 86.7%, the prospectus shows.

The 2012-2C tranche will likely price with a higher coupon than the A and B tranches. The A notes carry a 4.625% interest rate and the B notes 6.75%.

Air Canada achieved a 6.625% coupon on the $108.3 million C tranche of its 2013-1 EETC in April and United Airlines a 6.125% on its $425 million 2012-3 C issue in December 2012.

Goldman Sachs is sole bookrunner.

US Airways priced a $500 million senior unsecured debt issue with a 6.125% interest rate on 21 May. It launched and priced a two-tranche $1.6 billion senior secured route financing on 16 May.

American Airlines, which plans to merge with US Airways in the third quarter, is seeking bankruptcy court approval for an up to $130 million C tranche for its $663 million 2013-1 EETC that closed in March.