By Paul A. Harris
St. Louis, Sept. 25 - American Airlines Inc. priced a $450 million issue of 10½% three-year senior secured notes (B2/B/) at 99.366 to yield 10¾% on Friday, according to a market source.
The yield printed on top of the price talk.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc. were joint bookrunners for the Rule 144A and Regulation S offering.
Proceeds will be used to refinance an existing $432 million term loan.
The issuer is a Fort Worth-based passenger air carrier.
| Issuer: | American Airlines Inc.
|
| Face amount: | $450 million
|
| Proceeds: | $447.147 million
|
| Maturity: | Oct. 15, 2012
|
| Security description: | Senior secured notes
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc.
|
| Coupon: | 10½%
|
| Price: | 99.366
|
| Yield: | 10¾%
|
| Spread: | 930 bps
|
| Call protection: | Non-callable (make-whole provision at Treasuries plus 50 bps)
|
| Trade date: | Sept. 25
|
| Settlement date: | Oct. 9
|
| Ratings: | Moody's B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 10¾% area
|
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