United Airlines Reopens Key Aircraft Financing Market as New Deliveries Surge
United Airlines reopened the capital markets for airline debt on Monday when it raised more than a billion dollars to finance 39 new Boeing aircraft in its fleet.
The Chicago-based carrier priced the $1.32 billion single-tranche secured notes, known as enhanced equipment trust certificates (EETC), that mature in 2037 with a 5.8 percent coupon. Proceeds will finance 22 737-8s and 17 737-9s that United took delivery of between August 2022 and May 2023. The deal was not upsized, nor was the collateral pool expanded, between launch and pricing.
United's return to the debt capital markets signals a shift back towards normal aircraft financing after the disruption of the pandemic. That's good news, both for airlines and investors, considering the thousands of