Delta Air Lines, Inc.’s $500 million offering of enhanced equipment trust certificates

Debevoise & Plimpton LLP recently advised client Delta Air Lines, Inc. (“Delta”) on its $500 million offering of enhanced equipment trust certificates (“EETC”) secured by two Airbus A220-100 aircraft, six Airbus A321-200 aircraft, four Boeing 737-900ER aircraft and two Airbus A350-900 aircraft, which were delivered new to Delta from May 2018 to December 2018.

The transaction closed on March 13, 2019. The offering was comprised of a $425 million AA tranche and a $75 million A tranche. This EETC offering was Delta’s first such offering since 2015, and was unique relative to other recent EETC offerings in that both tranches issued were non-amortizing and share a final expected distribution date of April 25, 2024. The offering was also notable in that it was the first EETC offering by a major U.S. airline to include Airbus A220 aircraft as collateral.

The Debevoise team was led by partner Brian E. Liu (Picture) and included partners Michael Bolotin and Matthew E. Kaplan, and associates Robert G. Gucwa, James F. Malmo, Nicholas P. Pellicani, Trey Reilly, Jonathan R. Wong and Jaesuk Yoo.

Involved fees earner: Michael Bolotin – Debevoise & Plimpton; Robert Gucwa – Debevoise & Plimpton; Matthew Kaplan – Debevoise & Plimpton; Brian Liu – Debevoise & Plimpton; Nicholas Pellicani – Debevoise & Plimpton; Trey Reilly – Debevoise & Plimpton; Jaesuk Yoo – Debevoise & Plimpton;

Law Firms: Debevoise & Plimpton;

Clients: Delta Air Lines Inc;

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Author: Ambrogio Visconti