Equipment trust certificates

Equipment trust certificates

Certificates issued by a trust that is formed to purchase an asset and lease it to a lessee. When the last of the certificates has been repaid, title and ownership of the asset transfers to the lessee.

Equipment Trust Certificate

A certificate entitling the holder to the revenue from the lease of an asset. In an equipment trust, the trust owns the asset and leases the asset to a company (which usually set up the trust). Certificate holders receive lease payments until the certificates mature, at which point ownership of the asset is transferred to the company leasing it. Rail and airline companies use equipment trust certificates in order to finance the purchase of trains and planes.
References in periodicals archive ?
The upgrade affects the company's equipment pass-through certificates and equipment trust certificates.
Northwest Airlines European Enhanced Equipment Trust Certificates, series 2001-2 Class A notes rated 'BBB+', Rating Watch Positive; and Class B notes rated 'B', Rating Watch Positive; are all withdrawn.
s $539 million enhanced equipment trust certificates, whose tranches carry various ratings (see chart below) on CreditWatch with negative implications.
Fitch Ratings has said that it has downgraded six classes and affirmed six classes of the Northwest Airlines Pass Through Trusts and enhanced equipment trust certificates (EETCs).
Standard & Poor's criteria for enhanced equipment trust certificates.
Fitch Ratings has said that it has affirmed 12 classes and downgraded one class of the Delta Air Lines equipment trust certificates (ETCs) and enhanced equipment trust certificates (EETCs).
Standard & Poor's also affirmed its outstanding ratings on Continental's enhanced equipment trust certificates and bank loan rating.
2bn of unsecured debt and USD471m in equipment trust certificates has gone down well with investors.
5bn in debt securities, pass through certificates and equipment trust certificates.
Bankruptcy Code to owners of equipment notes (and thus, indirectly, to certificate holders), and on Standard & Poor's criteria for "enhanced equipment trust certificates.
Air Canada said it is closing its private offering of three tranches of enhanced equipment trust certificates, in the aggregate face amount of USD1,031,390,000.
MONTREAL, March 25, 2015 /PRNewswire/ - Air Canada announced today the closing of its previously announced private offering of three tranches of enhanced equipment trust certificates, in the aggregate face amount of U.

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