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 ?
This is the first JOLCO closing in a USD 1.12 billion transaction combining senior secured enhanced equipment trust certificates (EETC) and JOLCO equity in relation to a number of new generation British Airways operated aircraft.
Fitch has also upgraded the class B certificates for United's 2014-2 and 2012-2 series of enhanced equipment trust certificates (EETCs) to 'BBB+' from 'BBB' and affirmed the ratings for United's other outstanding enhanced equipment trust certificates (EETCs).
Dubai's flag carrier Emirates has been tapping US capital markets through equipment trust certificates and received a guarantee from the French export credit agency for its floating-rate capital market bond.
American Airlines has priced an offering of two classes of promoted equipment trust certificates in the aggregate face amount of approximately $957 million.
Capital markets such as that in Enhanced Equipment Trust Certificates (EETC), a secured corporate bond structure typically used by U.S.
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 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.
The carrier is issuing "enhanced equipment trust certificates" secured by 16 Boeing 737-700 jets delivered between Nov.
Also, aircraft can be financed through various means, including the use of Enhanced Equipment Trust Certificates ("EETC") (7).
(NBB), in a USD 870 million transaction combining senior secured enhanced equipment trust certificates (EETC) and Japanese operating lease with call option (JOLCO) equity in relation to a number of new generation British Airways operated aircraft, the company said.
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.
The Montreal-based airline has declared private offering of three tranches of better equipment trust certificates (EETC) worth US$714.5 million.

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