Sun Country Secures $188 Millions From Enhanced Equipment Trust Certificates Tied To 13 Boeing 737-800sApril 11, 2022
Sun Country, Inc. (“Sun Country”), the wholly owned subsidiary of Sun Country Airlines Holdings, Inc. (NASDAQ: SNCY) just raised $188 millions by issuing Equipment Enhanced Trust Certificates EETCs using 13 Boeing 737-800 in its fleet as collateral securing the transaction. According to the official announcement made on March 31st 2022, of the 13 Boeing 737-800s used to secure the transaction, two aircraft are currently owned by the airline with another five also owned, but currently subject to an ongoing separate refinancing transaction. Of the remaining six aircraft enjoined in the transaction, two of the aircraft that are currently operated on lease are due to be acquired by the airline when exercising a purchase option that had been provisioned in the aircraft’s lease agreement. As for the four remaining Boeing 737-800s, these are aircraft whose acquisition is pending but may be closed by the date of execution of the EETC issuance transaction.
Also according to the announcement, $172,507,000 in proceeds have been received by Sun Country for twelve of the aircraft on March 31, 2022 with an additional $15,770,000 of gross proceeds expected on or before September 15, 2022.
The trust certificates issued for the aircraft consist of $142,830,000 Class A Certificates with an interest rate of 4.84% annual and $45,447,000 Class B Certificates with interest rate of 5.75% per year. The certificates have been strictly issued in a private proceeding to “accredited investors”. Sun Country currently operates a fleet of 44 Boeing 737-800s and 1 Boeing 737-700 including a dozen freighters variant operated on behalf of Amazon’s Prime Air who also owns these aircraft.