Hughes Hubbard served as counsel to United Airlines, Inc. in its $1.05 billion
offering of enhanced equipment trust certificates (EETCs) secured by 18 new
The transaction closed on June 13. The underwriting
group included Morgan Stanley, Credit Suisse, Goldman Sachs, Citigroup and
Deutsche Bank Securities.
The offering featured a $728.7 million AA
tranche and a $324 million A tranche, both with a final expected distribution
date of July 7, 2028. The AA tranche carries an interest rate of 3.10 percent
and the A tranche carries an interest rate of 3.45 percent.
use the proceeds to finance 18 Boeing aircraft -- four B737-800s, five
B737-900ERs, two B787-9s and seven B777-300ERs -- scheduled for delivery
between January 2016 and March 2017.
HHR also advised United on its last
foray in the EETC market in November 2015, with a $433.7 million dual-tranche
issuance secured by 10 aircraft.
United provides the world's most
comprehensive route network, including hubs in Chicago, Los Angeles, New York
and Washington, D.C. The airline is a founding member of Star Alliance, which
provides service to 192 countries via 28 member airlines.
John Hoyns led
the HHR team, which included Andy Braiterman, Juli Thorstenn, Emily
Nordin, summer associate Ileana Loudarou, and paralegals
Alexandra Hernandez and Charlene Minaya.