Published on 1/12/2016 in the Prospect News Investment Grade Daily.
New Issue: American Airlines sells upsized $1 billion of class AA, A, B pass-through certificates
By Aleesia Forni
New York, Jan. 12 – American Airlines, Inc. priced an upsized $1,074,350,000 offering of class AA, class A and class B pass-through certificates, series 2016-1, according to an informed source and an FWP filed with the Securities and Exchange Commission.
The offering was upsized from $822,953,000.
Included in the three-part sale was $584,374,000 of 3.575% class AA certificates (Aa3/AA) priced at par with a spread of Treasuries plus 146.7 basis points and a final expected distribution date of Jan. 15, 2028.
Also, $262,218,000 of 4.1% class A certificates (A2/A) sold at par, or Treasuries plus 199.2 bps. The issue has a final expected distribution date of Jan. 15, 2028.
And $227,758,000 of 5.25% class B certificates (Baa3/BBB) priced at par with a 370.5 bps spread over Treasuries and a final expected distribution date of Jan. 15, 2024.
Goldman Sachs & Co. and Citigroup Global Markets Inc. are the structuring agents and lead bookrunners.
Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are active bookrunners.
BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and Credit Agricole Securities are bookrunners.
Proceeds will be used to acquire equipment notes that will be issued to finance the purchase of nine Airbus A321-231 aircraft delivered new to US Airways, Inc. from September 2014 to June 2015, six Boeing 737-823 aircraft delivered new to American from September 2015 to December 2015, one Boeing 777-323ER aircraft delivered new to American in October 2015 and two Boeing 787-8 aircraft delivered new to American from April 2015 to September 2015.
The commercial airline, which is a subsidiary of AMR Corp., is based in Fort Worth, Texas.
| Issuer: | American Airlines Inc.
|
| Issue: | Pass-through certificates
|
| Amount: | $1,074,350,000, upsized from $822,953,000
|
| Bookrunners: | Goldman Sachs & Co., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Agricole Securities
|
| Co-manager: | U.S. Bancorp Investments Inc.
|
| Trade date: | Jan. 12
|
| Settlement date: | Jan. 19
|
| Distribution: | SEC registered
|
|
|
| Class AA certificates
|
| Amount: | $584,374,000, upsized from $447,631,000
|
| Final distribution date: | Jan. 15, 2028
|
| Coupon: | 3.575%
|
| Price: | Par
|
| Yield: | 3.575%
|
| Spread: | Treasuries plus 146.7 bps
|
| Ratings: | Moody’s: Aa3
|
| Standard & Poor’s: AA
|
|
|
| Class A certificates
|
| Amount: | $262,218,000, upsized from $200,859,000
|
| Final distribution date: | Jan. 15, 2028
|
| Coupon: | 4.1%
|
| Price: | Par
|
| Yield: | 4.1%
|
| Spread: | Treasuries plus 199.2 bps
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
|
|
| Class B certificates
|
| Amount: | $227,758,000, upsized from $174,463,000
|
| Final distribution date: | Jan. 15, 2024
|
| Coupon: | 5.25%
|
| Price: | Par
|
| Yield: | 5.25%
|
| Spread: | Treasuries plus 370.5 bps
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB
|
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