Originally Posted by
T773ER
The Chicago-based carrier priced the $1.32 billion single-tranche secured notes, known as enhanced equipment trust certificates (EETC), that mature in 2037 with a 5.8 percent coupon. Proceeds will finance 22 737-8s and 17 737-9s that United took delivery of between August 2022 and May 2023.
They’re only paying 5.8% on these notes? That’s actually an amazing deal for the company, especially in a world where you can get Treasuries that pay almost 5.6%. Personally I’d want a hell of a lot more yield than that to be buying airline debt over US government debt given the history of each…