US Airways launched an $819.6 million enhanced equipment trust certificates (EETC) issue backed by 18 aircraft today.
The 2013-1 debt is split into a senior $620.1 million A tranche and a subordinate $199.5 million B tranche. The A tranche has an initial loan to aircraft value ratio of 54.3% and matures on 15 May 2027, while the B tranche has an initial loan to aircraft value ratio of 72.1% and matures on 15 May 2023.
US Airways could issue a deeply subordinate C tranche, according to the prospectus filed with the stock exchange today.
The issue finances the delivery of 14 Airbus A321s and four A330-200s, which will be delivered between September 2013 and June 2014.
Tom Weir, vice-president and treasurer of US Airways, told Flightglobal in March that it planned to make a decision on how to finance its remaining 2013 deliveries this month.
Industry participants expect US Airways to achieve pricing comparable or better to that of its last EETC, with its proposed merger with American Airlines considered a credit positive.
US Airways achieved a 4.625% coupon on the $418.1 million A tranche and a 6.75% coupon on the B tranche of its 2012-2 EETC issue in December 2012.
The A tranche is rated A- and Ba1, and the B tranche BB+ and B1 by Fitch Ratings and Moody's, respectively.
Goldman Sachs, Citi and Morgan Stanley are joint bookrunners, and Barclays Capital, Bank of America Merrill Lynch and Natixis are co-managers of the issue. Wilmington Trust is trustee.