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Law Firm Milbank Represents Bank Group in $927M Financing for Purchase of 16 Aircraft by British Airways

British Airways (BA) issued its first-ever Enhanced Equipment Trust Certificate (EETC) raising US$927 million.  The securities are intended to finance BA’s purchase of 14 new aircraft, including six Boeing Dreamliners.  Law firm Milbank, Tweed, Hadley & McCloy represented Citibank as lead structuring agent for a group of international banks backing the offering.


BA’s entrance into the EETC market is the first-of-its-kind transaction in a jurisdiction outside the US which has not ratified the Cape Town Convention.  The offering sets a groundbreaking precedent which opens the capital markets to airlines globally on the basis of English Law, and represents a genuine and significant market development.

Milbank’s team was led by James Cameron in the London office with Drew Fine and Arnold Peinado in New York.  Mr. Cameron commented on the deal, “This is a ground-breaking transaction, which shows how the capital markets can be made available to airlines globally.  The deal used English Law to access the capital markets in a way that was previously only available to domestic US airlines.  We were ideally placed to advise on this deal as the firm of choice for the most innovative transactions in the aviation sector.”

Since early 2012, Milbank has advised on 11 separate EETC deals, raising aggregate proceeds of more than $5 billion for some of the world’s leading airlines.

So far this year, Milbank has represented:

  1. Underwriters in US$820 Million EETC Offering by US Airways
  2. Initial Purchasers in US$715 Million First EETC Offering by Air Canada
  3. Underwriters in US$445 Million First EETC Offering by Hawaiian Airlines
  4. Underwriters in US$100 Million EETC Offering by US Airways

In 2012, Milbank represented:

  1. Underwriters in US$425 Million EETC Offering by Continental Airlines
  2. Underwriters in US$546 Million EETC Offering by US Airways
  3. Underwriters In US$844 Million EETC Offering By Continental Airlines
  4. Doric Nimrod Air Finance Alpha Limited in the First International EETC Offering
  5. Underwriters in US$623 Million EETC Offerings by US Airways
  6. Underwriters in US$892 Million EETC Offering by Continental Airlines

About Milbank

Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that has been providing innovative legal solutions to clients throughout the world for more than 145 years.  Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Singapore, Tokyo and Washington, DC.

The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments.  Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout its global network.  Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectoral expertise and a strong tradition of innovation and client service.

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