(TAN): Hawaiian Airlines on July 29 announced the pricing of its offering of Enhanced Equipment Trust Certificates that will be used to obtain financing secured by eight Airbus aircraft.
The offering comprises USD 216,976,000 Class A certificates and USD 45,010,000 Class B certificates. Each class of certificates represents an interest in its respective pass through trust. The trusts will use the proceeds from the offering to acquire equipment notes that will be secured by six Airbus A321-200neo and two Airbus A330-200 aircraft.
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The two tranches of certificates will have a weighted average interest rate of 7.85%.
The Class A certificates will have an interest rate of 7.375% per annum and a final expected distribution date of Sept. 15, 2027. The Class B Certificates will have an interest rate of 11.25% per annum and a final expected distribution date of Sept. 15, 2025.
The offering is scheduled to close on Aug. 5, 2020, subject to customary closing conditions. Hawaiian will receive net proceeds after transaction fees of approximately USD 259,366,140.
The company will fully and unconditionally guarantee the payment obligations of Hawaiian under the equipment notes.
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New board members
Hawaiian Holdings, the parent company of Hawaiian Airlines, has added C. Jayne Hrdlicka, former CEO of Australia-based Jetstar Group, and Michael E. McNamara, Executive Vice President and CIO of Target Corporation to its board of directors.
Second quarter results
Hawaiian Holdings has reported a USD 3.81 loss per share in Q2 2020.
The company hasn’t been able to offer detailed guidance related to capacity expectations for Q3 due to the uncertain timing of the relaxation of travel and quarantine restrictions.
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