New Issue: American Airlines sells $657.03 million pass-through certificates

By Andrea Heisinger

New York, Jan. 20 - American Airlines, Inc. priced $657.032 million of class A and B pass-through certificates on Thursday, according to an FWP filing with the Securities and Exchange Commission.

The certificates are guaranteed by parent company AMR Corp.

The $503.206 million of 5.25% 10-year class A certificates (Baa3/A-/) priced at par to yield 5.25%. They have an average life of 6.6 years.

The $153.826 million of 7% seven-year class B certificates (B1/BB+/) sold at par to yield 7%. The average life of the certificates is 5.4 years.

Goldman Sachs & Co., Deutsche Bank Securities Inc. and Morgan Stanley & Co. Inc. were the bookrunners.

Proceeds are being used to buy several Boeing aircraft.

The commercial airline is based in Fort Worth, Texas.

Issuer:	American Airlines, Inc.
Guarantor:	AMR Corp.
Issue:	Pass-through certificates
Amount:	$657,032,000
Bookrunners:	Goldman Sachs & Co., Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc.
Trade date:	Jan. 20
Settlement date:	Jan. 25
Class A certificates
Amount:	$503,206,000
Maturity:	Jan. 31, 2021 (expected distribution), July 31, 2022 (legal distribution)
Average life:	6.6 years
Coupon:	5.25%
Price:	Par
Yield:	5.25%
Ratings:	Moody's: Baa3
	Standard & Poor's: A-
Class B certificates
Amount:	$153,826,000
Maturity:	Jan. 31, 2018 (expected distribution), July 31, 2019 (legal distribution)
Average life:	5.4 years
Coupon:	7%
Price:	Par
Yield:	7%
Ratings:	Moody's: B1
	Standard & Poor's: BB+

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