Jetblue boosts EETC by $115.6m at 8% | News | Airfinance Journal

Jetblue boosts EETC by $115.6m at 8%

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Jetblue Airways has topped up its Series 2019-1 enhanced equipment trust certificate (EETC) issuance with a $115.6 million class B pass-through certificate offering. 

The upsized issuance, which closed on 27 August, bears interest at 8% per annum and is backed by 25 Airbus A321 aircraft.

Jetblue took delivery of the aircraft between February 2017 and December 2018.

The initial loan-to-value ratio is 75.1%.

The Class B certificates will bring the total amount raised to $887.8 million, the US carrier states in a regulatory filing.

Morgan Stanley is the sole structuring agent and lead bookrunner, while Credit Agricole is the bookrunner.

Credit Agricole, acting through its New York Branch, will provide a liquidity facility for the Class B certificates in an amount sufficient to make three semi-annual interest distributions on the outstanding balance of those certificates.

Fitch Ratings has assigned the certificates a BBB rating. It notes that the class B certificates are being sized at $115.6 million and will feature an initial tenor of 7.2 years, a weighted average life of 4.3 years, and a balloon payment equal to 22.1% of the initial principal balance. Like the class AA and A certificates, the class B certificates will feature an 18-month liquidity facility. Moody's Investors Service has assigned a Baa2 rating to the certificates.

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