By Paul A. Harris
Chicago, Feb. 8 – American Airlines, Inc. priced $750 million of 7¼% five-year first-lien senior secured notes (Ba3/B-/B) in a Wednesday drive-by trailing a conference call with investors, according to market sources and a press release.
The notes priced at par.
Parent American Airlines Group Inc. will guarantee the notes.
The deal was playing to $2 billion of orders at midmorning, with pricing discussions taking place in the 7½% to 7¾% context, according to a sellside source, who added that the deal had the potential to price well inside the low end of that range. Preliminary talk was in the 7¾% area.
Left bookrunner Barclays will bill and deliver. Goldman Sachs & Co. LLC, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, ICBC Standard Bank plc, SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., Credit Agricole CIB, Standard Chartered Bank, MUFG Securities Americas Inc., HSBC Securities (USA) Inc., U.S. Bancorp Investments Inc. and Bank of Texas are the joint bookrunners.
The Rule 144A for life notes become callable after two years at par plus 50% of the coupon.
The Fort Worth-based air carrier is also in the leverage markets with a $1 billion term loan.
The notes and loan are secured by all of the company’s South American international slots, gates and routes (SGR). The collateral package will continue to be shared with the company’s $750 million revolving credit facility due 2024.
Proceeds from the notes and term loan will be used to amend and extend a portion of the company’s existing $1.752 billion South American SGR-backed term loan B due June 2025.
| Issuer: | American Airlines, Inc.
|
| Guarantor: | American Airlines Group Inc.
|
| Amount: | $750 million
|
| Issue: | First-lien senior secured notes
|
| Maturity: | 2028
|
| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, ICBC Standard Bank plc, SMBC Nikko Securities America Inc., BNP Paribas Securities Corp., Credit Agricole CIB, Standard Chartered Bank, MUFG Securities Americas Inc., HSBC Securities (USA) Inc., U.S. Bancorp Investments Inc. and Bank of Texas
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Call features: | After two years at par plus 50% of coupon
|
| Trade date: | Feb. 8
|
| Settlement date: | Feb. 15
|
| Ratings: | Moody’s: Ba3
|
| S&P: B-
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
