By Paul A. Harris
Portland, Ore., May 16 – American Airlines Group Inc. price $750 million of three-year senior bullet notes (B1/BB-) at par to yield 5% in a Thursday drive-by, according to a bond investor.
The deal saw a big upsize, from $350 million, and was driven into the market on a significant amount of reverse inquiry, the source said.
The notes traded ½ point higher in the secondary market, which is not bad considering it's a three-year deal, the investor remarked.
Early guidance had the deal coming to yield 5% to 5¼%.
J.P. Morgan Securities LLC was the lead.
The Fort Worth-based air carrier plans to use the proceeds to fund contributions to its pension fund.
| Issuer: | American Airlines Group Inc.
|
| Amount: | $750 million, increased from $350 million
|
| Maturity: | June 1, 2022
|
| Securities: | Senior notes
|
| Lead: | J.P. Morgan Securities LLC
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 285 bps
|
| Call protection: | Non-callable
|
| Trade date: | May 16
|
| Ratings: | Moody's: B1
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick to market
|
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