United Airlines has priced a $919.6 million enhanced equipment trust certification transaction split into a Class AA and Class A tranches (Series 2016-2).
The 12-year $636.5 million Class AA notes, rated AA by Fitch and with an initial loan to value (LTV) of 38.7% and a weighted average life (WAL) of 9.1 years, have a coupon of 2.875%, the make-whole spread over US Treasuries is 20 basis points (bps). The 12-year $283.1 million Class A notes, rated A by Fitch with an initial LTV of 55.8% and a WAL of 9.1 years, priced at 3.100% and 25bps over US treasuries.
The notes are secured on 13 aircraft consisting of one new Boeing 737-824 aircraft, three new Boeing 737-924ER aircraft, two new Boeing 787-9 aircraft and seven new Boeing 777-322ER aircraft scheduled for delivery between December 2016 and June 2017.
Credit Suisse, Morgan Stanley and Goldman Sachs are lead bookrunners, with Citi, BNP Paribas, Deutsche Bank, Bank of America Merrill Lynch, BNP Paribas and Credit Agricole as bookrunners. Wilmington Trust is the Subordination Agent, Trustee, Paying Agent and Loan Trustee; US Bank is the escrow agent, with Natixis as the depositary bank and CBA providing the 18 month liquidity facility.