United Airlines has closed $810 million in enhanced equipment trust certificates (EETC) to refinance 27 Airbus and Boeing aircraft owned by the carrier.
The $810 million package is comprised of $697 million in class A certificates with an interest rate of 9.75%, whose distribution date is 15 January 2017. The $113 million class B certificates have a 12% interest rate with a 15 January 2016 distribution date.
The carrier intends to use the proceeds from the current financing to repay $493 million in aggregate principal outstanding from EETCs issued in 2000 and 2002. The remaining $290 million is being used for general corporate purposes.
JP Morgan Securities, Morgan Stanley and Goldman Sachs are joint book-running managers for the transaction, and Citigroup, Credit Suisse Securities and Deutsche Bank Securities are co-managers for the offering.
Source: Air Transport Intelligence news