By Cristal Cody
Chicago, Oct. 28 – American Airlines, Inc. sold a second offering of pass-through certificates in the same week, according to a market source.
The airline sold $202,065,000 of class B pass-through certificates due July 11, 2030 (Baa3/BB+/BB+) two market days after selling an offering of $757,825,000 class A certificates.
The certificates priced with a 3.95% coupon at par, lower than initial price talk in the 4.375% to 4.5% area.
The spread priced out as Treasuries plus 280.3 basis points.
The make-whole spread over Treasuries is 45 bps.
The equipment notes underlying the certificates will have the benefit of a security interest in 26 aircraft, according to an investor presentation and a 424B5 filing with the Securities and Exchange Commission.
Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are the joint structuring agents and joint lead bookrunners.
Joint bookrunners are BofA Securities, Inc., Barclays, Credit Suisse Securities (USA) LLC, ICBC Standard Bank plc, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., MUFG and Standard Chartered Bank.
U.S. Bancorp Investments, Inc. and BOK Financial Securities, Inc. are also listed.
Credit Agricole is the liquidity facility provider.
Proceeds will be held in escrow with depositary SMBC and withdrawn to purchase equipment notes as the aircraft are financed. Most of the aircraft underlying the equipment notes are scheduled for delivery between January 2022 and September 2022.
The commercial airline, which is a subsidiary of AAG., is based in Fort Worth.
| Issuer: | American Airlines, Inc.
|
| Issue: | Class B pass-through certificates
|
| Amount: | $202.07 million
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| Maturity: | July 11, 2030
|
| Bookrunners: | Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays, Credit Suisse Securities (USA) LLC, ICBC Standard Bank plc, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., HSBC Securities (USA) Inc., MUFG, Standard Chartered Bank, U.S. Bancorp Investments, Inc. and BOK Financial Securities, Inc.
|
| Trustee: | Wilmington Trust Co.
|
| Coupon: | 3.95%
|
| Price: | Par
|
| Yield: | 3.95%
|
| Spread: | Treasuries plus 280.3 bps
|
| Call: | Make-whole call at Treasuries plus 45 bps
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 8
|
| Ratings: | Moody’s: Baa3
|
| S&P: BB+
|
| Fitch: BB+
|
| Cusip: | 02376LAA3
|
| Price talk: | 4.375% to 4.5% area
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