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 ?
Fitch's review of the Delta EETC transactions listed above is consistent with Fitch's EETC criteria titled 'Surveillance Criteria for Enhanced Equipment Trust Certificates,' dated November 18, 2009, except as detailed in the paragraphs below.
Delta Air Lines European Enhanced Equipment Trust Certificates, Series 2001-2
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2001-2 Class A notes rated 'BBB+', Rating Watch Positive; and Class B notes rated 'B', Rating Watch Positive; are all withdrawn.
CHICAGO -- Fitch Ratings assigns a rating of 'A-' to the $300,000,000 Sanshou Equipment Trust certificate.
NEW YORK -- Fitch Ratings has affirmed the following classes of Delta Air Lines (Delta) Enhanced Equipment Trust Certificate (EETC) transactions:
KBRA rates a number of airlines (to date, on an unpublished basis) to support ratings on Enhanced Equipment Trust Certificates and other secured-aircraft transactions either directly issued by airlines or for lease-backed transactions with airlines as lessees.
American Airlines has priced an offering of two classes of promoted equipment trust certificates in the aggregate face amount of approximately $957 million.
Among options on the table, Ryanair is exploring whether to use a euro-denominated version of Enhanced Equipment Trust Certificates (EETC), a dollar-denominated funding structure popular with US airlines and gradually being adopted abroad.
It has also sold Enhanced Equipment Trust Certificates (EETCs) in the last year, which are similar to a form of secured debt financing, like mortgages.
1 May 2012 - Morgan Stanley & Company LLC, Citigroup Global Markets Inc and Goldman Sachs & Company were mandated to book-run a sale of enhanced equipment trust certificates by US Airways Inc, the airline said on Monday.
US Airways Group Inc (NYSE: LCC), a US-based airline company, has announced two offerings of enhanced equipment trust certificates in a financing proposal.
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.

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