NEW YORK, July 20, 2011 – Milbank, Tweed, Hadley & McCloy, LLP represented Goldman, Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and a syndicate of other underwriters in connection with the registered public offering by US Airways of three tranches of enhanced equipment trust certificates ("EETCs"). On June 28, 2011, US Airways closed the offerings of $293,944,000 aggregate face amount of 7.125% Pass Through Certificates, Series 2011-1A, $94,283,000 aggregate face amount of 9.750% Pass Through Certificates, Series 2011-1B and $83,193,000 aggregate face amount of 10.875% Pass Through Certificates, Series 2011-1C. The offering of the 2011-1 series of certificates was the second largest EETC offering this year.
Shortly after the closing of the 2011-1 offerings, Milbank represented Goldman, Sachs & Co., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC in connection with the registered public offering by US Airways of an additional tranche related to EETCs initially issued in December 2010. On July 12, 2011, US Airways closed the offering of $53,288,000 aggregate face amount of 11.000% Pass Through Certificates, Series 2010-1C.
US Airways operates the fifth largest airline in the United States as measured by domestic revenue passenger miles and available seat miles, offering scheduled passenger service on more than 3,200 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. US Airways intends to use the proceeds of the 2011-1 offerings to acquire new Airbus aircraft, to refinance existing Airbus aircraft and for general corporate purposes. The proceeds of the 2010-1C offering will be used for general corporate purposes.
Since US Airways returned to the EETC market late in 2010, Milbank has acted as underwriters' counsel on EETC offerings that have allowed US Airways to raise more than $850 million.
The Milbank team, led by partner Elliot Gewirtz in the Transportation and Space Group and partner Arnold Peinado, III, in the Global Securities Group, included associates Kevin Kertesz in the Transportation and Space Group, Kevin MacLeod, Jessica Zhou, Jennifer Beaudry and Jenny Zhou in the Global Securities Group. Tax partner Mark Regante and associate Thallen Brassel provided tax advice and Executive Compensation and Employee Benefits partner Joel Krasnow provided ERISA advice. Transportation and Space partner Helfried Schwarz and associate Brian Liu also represented Natixis S.A., acting through its New York Branch, in its role as liquidity provider for the 2011-1A and the 2011-1B certificates.