United Airlines is in the market with the first enhanced equipment trust certificate (EETC) transaction for many months.
United is offering a single trance of Class A notes due 2036 valued at $1.32bn priced at a 5.80% coupon and 35bp spread over US Treasuries.
The notes will be secured on a portfolio of 39 aircraft - 22 737 MAX 8s and 17 737 MAX 9s - delivered new to United between Oct. 2022 and May 2023. The initial loan to aircraft valuation (LTV) ratio is 62.5% - the maximum LTV is 63.5%. There is an 18-month liquidity facility provided by Natixis. Wilmington Trust is acting as subordination agent, trustee and loan trustee.
Citi, Credit Suisse, Deutsche Bank and Goldman Sachs are the lead bookrunners on the deal, with BofA Securities, Barclays, JPMorgan, Morgan Stanley, BNP Paribas, Credit Agricole, Natixis, Academy Securities, AmeriVet Securities and Loop Capital Markets as bookrunners.
The settlement date for the notes is June 20.