Virgin America has signed a senior secured $39.3 million private placement for an Airbus A320 due in February 2016.

The deal is structured as a lease financing transaction with the Burlingame, California-based carrier’s wholly-owned VX 2015 subsidiary owning and financing the A320 and leasing it to the airline under the agreement signed on 5 October.

The $39.3 million in debt is split between senior notes with a 12-year tenor and junior notes with a seven-year tenor, both of which are priced at a margin over Libor. The notes will be funded upon delivery of the aircraft.

New York Life Insurance and its affiliates are the initial senior purchasers and Investec is the initial junior purchaser, a stock exchange filing shows.

Virgin America has the option to prepay the debt after three years from close.

Bank of Utah is the trustee.

Source: Cirium Dashboard