American Airlines will use new debt to redeem 11¾% notes due 2025

Chicago, Nov. 16 – American Airlines Inc. is planning to redeem $1.5 billion of its existing 11¾% senior secured notes due 2025, according to a press release.

The company is using the term loan market and the bond market to raise $1.5 billion to fund the redemption.

The company, at its sole discretion, may redeem additional 11¾% notes, according to the release.

American priced the $2.5 billion notes deal on June 24, 2020, as previously reported.

Call protection, according to the indenture, is for a make-whole call at Treasuries plus 50 basis points.

American Airlines is a Fort Worth-based airline company.

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