equipment trust certificate


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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.

equipment trust certificate

An intermediate- to long-term security that pays a fixed return based on payments received from the lease of equipment. These certificates are frequently used by railroads and airlines to finance rolling stock and aircraft, respectively.
References in periodicals archive ?
The structural enhancements allow the certificates to receive higher ratings than the triple-'B'-minus that would be assigned to unenhanced equipment trust certificates or pass-through certificates.
s $539 million enhanced equipment trust certificates, whose tranches carry various ratings (see chart below) on CreditWatch with negative implications.
To: From: Corporate credit rating BB BB- Senior secured debt BB BB- Senior unsecured debt BB- B+ Equipment trust certificates BBB- BB+ Pass-through trust series 1996-D BBB- BB+ Pass-through trust series 1996-2A-D BBB- BB+ Pass-through trust series 1997-2D BBB- BB+ Subordinated debt B+ B Preferred stock B+ B Calair L.
US Airways Inc, a wholly-owned subsidiary of US Airways Group Inc (NYSE:LCC) on Thursday announced its plans to make an offering of Class C enhanced equipment trust certificates in the aggregate principal amount of approximately USD53m.
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.
American Airlines has priced an offering of two classes of promoted equipment trust certificates in the aggregate face amount of approximately $957 million.
Citigroup, Goldman Sachs Group and Morgan Stanley have been hired as book-runners on USD$630 million of enhanced equipment trust certificates (EETCs) issued by DNA Alpha (Doric) to finance the latest aircraft deal.
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.
On August 18, 2004, Delta Air Lines began soliciting consents from holders of certain equipment trust certificates and pass through certificates to remove any contractual restrictions on Delta's ability to purchase or hold those securities.
NEW YORK -- Link to Fitch Ratings' Report: Rating Aircraft Enhanced Equipment Trust Certificates http://www.
Texas-based airline operator AMR Corp's (OTC: AAMRQ) said that its American Airlines Inc operating subsidiary has launched a private offering of two tranches of enhanced equipment trust certificates in the aggregate face amount of USD 663,378,000.
Delta Air Lines today began soliciting consents from holders of certain equipment trust certificates and pass through certificates to remove any contractual restrictions on Delta's ability to purchase or hold those securities.

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