American Airlines to price $813.8 million class AA, A, pass-throughs

By Devika Patel

Knoxville, Tenn., Sept. 19 – American Airlines, Inc. announced an $813,797,000 offering of class AA and class A pass-through enhanced equipment trust certificates, series 2016-3, in an FWP and a 424B5 filed with the Securities and Exchange Commission on Monday.

The deal includes $557,654,000 of class AA certificates with a final expected distribution date of Oct. 15, 2028.

Also, there is $256,143,000 of class A certificates with a final expected distribution date of Oct. 15, 2028.

The average life for both tranches will be 8.8 years.

Morgan Stanley & Co. LLC and Goldman Sachs & Co. are the structuring agents and lead bookrunners.

Citigroup Global Markets Inc., 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., Credit Agricole Securities, ICBC and U.S. Bancorp Investments Inc. are also bookrunners.

The company expects the class AA notes to be rated (Aa3/AA+) and the class A notes to be rated (A2/A+) by Moody’s Investors Service and Standard & Poor’s, respectively.

Proceeds will be used to purchase new aircraft.

The commercial airline, which is a subsidiary of AMR Corp., is based in Fort Worth, Texas.

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