Global law firm White & Case LLP has advised Morgan Stanley, Citigroup Global Markets, Inc., Goldman Sachs and Barclays, as underwriters, in the recent US$420 million offering of enhanced equipment trust certificates (EETC) by Spirit Airlines, the Florida-based ultra-low-cost carrier.
The proceeds will be used by the airline to meet its financing needs for 12 Airbus aircraft scheduled to be delivered over the next 12 months.
"Spirit Airlines, as a fast-growing airline, had a lot of financing options available to it and chose to tap the EETC market," said Asset Finance partner Ji Hong who, together with Gary Kashar, a Capital Markets partner, and Marten Olsson, a senior associate, led the transaction. "Against the backdrop of a volatile interest rate environment, the deal priced very well and is a testament to the strength of the EETC market."
This is the second time that Spirit Airlines accessed the EETC market following its 2015 inaugural offering that White & Case also worked on as counsel to the underwriters. EETCs are commonly used by US and international airlines to finance aircraft acquisitions.
"We are very appreciative of this opportunity to bring our EETC expertise to assist Spirit Airlines and the underwriters to lead this transaction to a successful conclusion," said Hong.
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