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American Airlines formally starts $1.5 billion debt raise
Chicago, Nov. 16 – American Airlines Inc. formally announced a $1.5 billion debt raise across an offering of senior secured notes due 2029 (BB/BB-) and a $750 million senior secured term loan (Ba2/BB/BB-), according to a press release.
Distribution will be through Rule 144A and Regulation S.
The same collateral that secures the 11¾% notes will secure the new notes and term loan. The security consists of slots, gates and routes between certain airports in the United States and certain airports in Australia, Canada, the Caribbean, Central America, China, Hong Kong, Japan, Mexico, South Korea and Switzerland. The new notes and loan will also be secured on a second-lien basis by certain slots, gates and routes between certain airports in the United States and certain airports in the European Union and the United Kingdom.
Proceeds will be used to redeem $1.5 billion of existing 11¾% senior secured notes due 2025.
American Airlines is a Fort Worth-based airline company.
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