Published on 2/20/2020 in the Prospect News High Yield Daily.
New Issue: American Airlines sells $500 million 3¾% five-year bullet notes at par
By Paul A. Harris
Portland, Ore., Feb. 20 – American Airlines Group Inc. priced a $500 million issue of five-year senior bullet notes (B1/BB-/BB-) at par to yield 3¾% on Thursday, according to an informed source.
The yield printed at the tight end of yield talk in the 3 7/8% area.
The Fort Worth-based airline plans to use the proceeds to fund the company's pension plan.
| Issuer: | American Airlines Group Inc.
|
| Amount: | $500 million
|
| Maturity: | March 1, 2025
|
| Securities: | Senior notes
|
| Left lead bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
|
| Coupon: | 3¾%
|
| Price: | Par
|
| Yield: | 3¾%
|
| Spread: | 239 bps
|
| Call protection: | Make-whole call at Treasuries plus 50 bps, otherwise non-callable
|
| Trade date: | Feb. 20
|
| Settlement date: | Feb. 25
|
| Ratings; | Moody's: B1
|
| S&P: BB-
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 3 7/8% area
|
| Marketing: | Drive-by
|
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