By Andrea Heisinger
Omaha, Sept. 20 - Southwest Airlines Co. priced $500 million of Class A and B pass through certificates due 2022 late Wednesday, a market source said.
The $412,100,000 of 6.15% Class A certificates (Aa3/AA-) priced at par. There is a make-whole call at Treasuries plus 30 basis points.
The $87,900,000 of 6.65% Class B certificates (Baa1/A) priced at par. There is a make-whole call at Treasuries plus 40 bps.
The average life for both tranches is 9.8 years.
Class A is backed by a $38.02 million liquidity facility.
Bookrunners were Morgan Stanley & Co., Inc. and Citigroup Global Markets Inc.
Southwest is a Dallas-based low-cost airline.
Issuer: | Southwest Airlines Co.
|
Issue: | Pass through certificates
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Amount: | $500 million
|
Final distribution: | Aug. 1, 2022
|
Average life: | 9.8 years
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Bookrunners: | Morgan Stanley & Co., Inc., Citigroup Global Markets Inc. |
|
Trade date: | Sept. 19
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Settlement date: | Oct. 3
|
|
Class A certificates
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Amount: | $412,100,000
|
Coupon: | 6.15%
|
Price: | Par
|
Call: | Make-whole at Treasuries plus 30 bps
|
Ratings: | Moody's: Aa3
|
| Standard & Poor's: AA-
|
|
Class B certificates
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Amount: | $87,900,000
|
Coupon: | 6.65%
|
Price: | Par
|
Call: | Make-whole at Treasuries plus 40 bps
|
Ratings: | Moody's: Baa1
|
| Standard & Poor's: A
|
|
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