Credit Lyonnais Successfully Completes European EETC for Northwest Airlines, Inc.Business Editors NEW YORK--(BUSINESS WIRE)--July 10, 2001 Credit Lyonnais Americas announced today the successful offering of a $396 million European Enhanced Equipment Trust Certificate issue ("E-EETC", a specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. structured bond offering used by large airlines) for Northwest Airlines, Inc., the first ever of its kind rated Aaa/AAA/AAA by Moody's, Fitch and Standard & Poor's credit rating services without monoline financial guarantee support. The combined interest spread was 60 basis points over Libor. Northwest Airlines, the world's fourth largest airline and one of the largest operators of Airbus aircraft, will use this bond offering to finance 14 new Airbus A319 and A320 aircraft being delivered through July 2002. Credit Lyonnais acted as Arranger, Structuring Agent, and Lead Manager for the public Class A tranche Tranche One of several related securities offered at the same time. Tranches from the same offering usually have different risk, reward, and/or maturity characteristics. tranche A class of bonds. and Lead Manager for the Class B tranche. ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) and Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank co-led the Class A tranche, along with Hypovereinsbank as co-manager and CDC See Control Data, century date change and Back Orifice. CDC - Control Data Corporation IXIS as liquidity provider. The transaction was highly successful and received strong reception from European institutions, where the issue was placed and was increased in size by 30% to satisfy market investor demand, said Credit Lyonnais. Northwest is the first airline to market such an offering as European Enhanced Equipment Trust Certificates. Credit Lyonnais said the overall structure was similar to a Floating Enhanced Aircraft Trust Securities ("FEATS") transaction that it structured and closed in November 2000 for Continental Airlines. This product was launched in Europe. Credit Lyonnais also said that this financing structure is being evaluated by all large airlines in Europe and is expected to become a key instrument for airlines to finance aircraft acquisitions. Credit Lyonnais Americas encompasses all of the commercial banking activities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. of Credit Lyonnais Group, a full-service worldwide financial institution with assets of approximately $175 billion and operations in more than 60 countries. |
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