JetBlue has successfully issued its first enhanced equipment trust certificate (EETC), a $431 million blow-out deal.

Each tranche was at least five times oversubscribed with investors attracted by the low-cost airline?s recent success and by a new structure designed to protect holders of junior notes.

The deal finances 13 A320-200s being delivered in 2004.

Three floating-rate notes were sold to investors, comprising a $119 million G1 and a $187 million G2 bond, both wrapped by MBIA and a $124 C million note, the first time a junior aircraft note has been sold since 2001.

Rated triple-A by both agencies, the $119 million G1 was more than five times oversubscribed and priced at 37.5 basis points (bp) over three-month Libor with a 6.1 average life. The similarly rated $187 million G2 has a 10-year average life and came in at 42bp over Libor. Both senior notes have a 51.3% loan-to-values. The Ba1/BB+ class-C note was also oversubscribed five times and pays Libor plus 425bp with a three-year average life and a 71.4% loan-to-value.

Merrill Lynch was co-lead manager, with Citigroup and Crédit Lyonnais Securities lead managers. The deal had an all-in cost of Libor plus 179bp. While jetBlue can obtain bank financing below this on a single aircraft, the airline is keen to diversify its sources of finance.