American Airlines closed $650 million in secured engine financing via the private placement market in June.
The Fort Worth-based carrier issued an enhanced equipment trust certificate (EETC), the company revealed during an earnings call today.
The transaction, which has maturities ranging from June 2022 to June 2026, is secured by a portfolio of spare engines.
While American did not disclose any further details about the transaction, president Derek Kerr says the notes carry “attractive rates achieved in comparable aircraft EETCs”.
In May 2018, the Oneworld carrier turned to the private EETC market with a a $268 million transaction that raised funds against 11 Airbus aircraft.
American stated today it has secured commercial debt and sale-and-leaseback funding for financing 26 aircraft to be delivered in 2019 and 2020, adding it has committed financing for all of its 2019 deliveries except for three regional jets.
American further notes that 25 of its 2020 deliveries already have financing committed.
Source: Cirium Dashboard
