By Devika Patel
Knoxville, Tenn., July 23 – American Airlines Inc. priced $1.2 billion of senior secured notes in two tranches on Wednesday, according to an 8-K filed with the Securities and Exchange Commission.
West Street Strategic Solutions Fund I, LP and Broad Street Credit Holdings LLC, each a division of the Goldman Sachs Group, Inc., are the investors.
The notes include $1 billion of notes which will be secured by a first priority lien against the American Airlines brand and related trademarks and intellectual property and $200 million of notes which will be secured by existing incremental capacity under the company’s LaGuardia Reagan National collateral.
The notes will mature in approximately 5.5 years and bear interest at 10¾%.
Interest may be paid half in cash and half in kind at a rate of 12% per year at the company’s election.
Proceeds will be used for general corporate purposes.
American Airlines is a Fort Worth-based airline company. The notes will be guaranteed by American Airlines Group Inc.
| Issuer: | American Airlines Inc.
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| Guarantor: | American Airlines Group Inc.
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| Issue: | Senior secured notes
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| Amount: | $1 billion and $200 million
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| Maturity: | 5.5 years (approximate)
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| Coupon: | 10¾%
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| Call: | Make-whole call followed by par call
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| Investors: | West Street Strategic Solutions Fund I, LP and Broad Street Credit Holdings LLC
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| Pricing date: | July 22
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| Settlement: | Third quarter of 2020
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| Distribution: | Private placement
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