China Eastern Airlines $185 million secured notes issue

Overview:

• China Eastern Airlines Corporation (CEA) as lessee and CES MU2—a special purpose trust incorporated in Delaware—as the issuer, have issued $185 million in secured notes due 2026 as guaranteed by the Export-Import Bank of the United States (EXIM).
• The proceeds from the offering were used to refinance certain EXIM loans for the leasing of one new Boeing 777-300ER and one new Boeing 737-800 aircraft.
• HSBC was the sole bookrunner and structuring agent for the transaction, and the final coupon rate was the lowest print for a EXIM-guaranteed bond of a similar maturity in the past two years.
• Baker & McKenzie acted for CEA and CES MU2 and was led by Shanghai-based partner Harvey Lau alongside consultants Yi Ding and Shanshan Xu.