June 26, 2013 / 6:21 AM / in 5 years

CORRECTED-British Airways launches $927 million bond issue

(Adds dropped word “million” to headline)

LONDON, June 26 (Reuters) - British Airways on Wednesday said it had launched a $927 million publicly-traded bond issue, using aircraft as collateral.

BA, owned by International Airlines Group, said the collateral for the bonds, known as Enhanced Equipment Trust Certificates (EETCs), would be made up of six new Boeing 787-8 aircraft, two Boeing 777-300 ER jets and six new Airbus A320-200 planes, due for delivery between June 2013 and June 2014.

EETCs and are a form of aircraft financing commonly used by U.S. airlines.

IAG said its class A bonds have an annual coupon, payable quarterly, of 4.625 percent, while the class B bonds have an annual coupon, payable quarterly, of 5.625 percent. (Reporting by Rhys Jones, Editing by Brenda Goh)

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