British Airways (BA) has priced two tranches of enhanced equipment trust certificates (EETCs): $764 million class A notes, rated A by S&P and A- by Fitch, via British Airways Pass Through Trust 2020-1A and $241 million of Class B, rated BBB by S&P and by Fitch, notes via British Airways Pass Through Trust 2020-1B.
Both tranches involve special-purpose vehicle Goliath acquiring new aircraft and leasing them to BA. The notes on secured on four existing Airbus A320-200 aircraft (delivered between June 2009 and June 2010) and 10 new order aircraft: three new Airbus A320neo models, two new Airbus A350-1000, and five new Boeing 787-10 (all new aircraft delivered or to be delivered between June and December 2020).
Citi is the sole structuring agent on the deal. Sumitomo Mitsui Banking Corp is the depositary bank, with Natixis providing the 18-month liquidity facility.
BA intends to use the proceeds to repay the $750 million bridge loan facility that it finalized in May 2020, with the remaining proceeds to finance the purchase of new aircraft.
The transaction is reported to have priced successfully with significant oversubscription.