Alaska Airlines has secured nearly $1.2 billion in a $1.73.919bn private offering of two Class A Enhanced Equipment Trust Certificates (EETC), Series 2020-1A and Series 2020-1B.
The notes are secured on a portfolio of 61 aircraft: 26 737-890 aircraft, each delivered new to Alaska Airlines from January 2007 to June 2010, 16 737-990ER aircraft, delivered new to Alaska from February 2016 to March 2019, and 19 Embraer E175 LR aircraft, each delivered new to Horizon from June 2017 to December 2018.
The $965.772 million Series A notes, which mature on Aug. 15 2027, priced 4.800% per annum, with the $208.147 million Series B notes, which mature on Aug. 15 2025, priced at 8.000% per annum.
Joint structuring agents and lead bookrunners are BofA Securities and Citi, with joint bookrunner Morgan Stanley. Crédit Agricole-CIB has provided a separate liquidity facility for each class of certificates, and is also a joint bookrunner on the deal.
Because of our long-standing commitment to conservative financial management and a strong balance sheet, we were fortunate to see strong demand for our offering," said Shane Tackett, Alaska's executive vice president of finance and chief financial officer. "With this financing and the actions we've taken to reduce our cash burn rate, we've created a liquidity runway that rivals our strongest competitors.