United Finances Houston Improvements
- Air Lease Corporation priced a $600 million unsecured medium-term notes issue at 0.8 percent last week. The debt matures in August 2024. The lessor will use proceeds for general corporate purposes, including aircraft purchases and repaying outstanding debt.
- Volaris and CDB Aviation have signed a sale-and-leaseback transaction for four Airbus A320neos. Deliveries of the aircraft will occur from October through May 2022. In July, Volaris CEO Enrique Beltranena said the airline was receiving bids with “absolutely astonishing” sale-lease rate factors from lessors to finance the 25 aircraft it plans to take by end-2022. The carrier leases its entire fleet.
- Canadian startup Jetlines has raised C$6.6 million ($5.3 million) from an equity private placement. The airline issued 16.5 million “units” that translate roughly to a share each. Proceeds from the equity raising exercise will be used for licensing expenses as well as general corporate purposes.
- The City of Houston and United Airlines have launched a two-tranche $278 million municipal bond issue for a new baggage claim system for the carrier at Houston Bush Intercontinental Airport. Proceeds will fund construction of the new system in Terminals C and E — both controlled by United — at the airport. United executives have previously cited the existing baggage claim system as a limit to the airline’s growth at Intercontinental, which was its second busiest hub behind Chicago O’Hare in 2019. Work began in 2019 and is scheduled to wrap in the third quarter of 2024.