Alaska Air talks $674.24 million pass-through certificates due 2027 at low to mid 5% area

By Cristal Cody

Tupelo, Miss., June 23 – Alaska Air Group, Inc. marketed $674,244,000 of pass-through enhanced equipment trust certificates (A/A-) on Tuesday, according to an informed source.

Initial price talk is in the low-to-mid 5% area.

The certificates have a final distribution date of Aug. 15, 2027.

BofA Securities, Inc., Credit Agricole Securities (USA) Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are the bookrunners.

The company held fixed income investor calls for the offering on Thursday.

Proceeds will be used to finance existing aircraft.

Alaska Air Group said in an 8-K filing with the Securities and Exchange Commission on Monday that it has applied for $1.1 billion in secured federal loan funding through the Coronavirus Aid, Relief and Economic Security Act.

The company said it is working with the U.S. Treasury on the funding terms and expects to reach an agreement early in the third quarter.

SeaTac, Wash.-based Alaska Air Group operates Alaska Airlines Inc. and Horizon Air Industries Inc.

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