Published on 1/5/2017 in the Prospect News Investment Grade Daily.
New Issue: American Airlines prices $785.44 million of pass-through certificates
By Devika Patel
Knoxville, Tenn., Jan. 5 – American Airlines, Inc. sold $785,438,000 of class AA and class A pass-through enhanced equipment trust certificates, series 2016-3, at par on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $536,811,000 of 3.65% class AA certificates and $248,627,000 of 4% class A certificates.
Both tranches have an average life of 8.8 years. 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 S&P Global Ratings, respectively.
Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the bookrunners.
Proceeds will be used to purchase new aircraft.
The commercial airline, which is a subsidiary of AMR Corp., is based in Fort Worth, Texas.
| Issuer: | American Airlines, Inc.
|
| Amount: | $785,438,000
|
| Description: | Pass-through enhanced equipment trust certificates
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc.
|
| Senior co-managers: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., ICBC Standard Bank plc, U.S. Bancorp Investments Inc.
|
| Pricing date: | Jan. 4
|
| Settlement date: | Jan. 13
|
| Distribution: | SEC registered
|
|
|
| Class AA certificates
|
| Amount: | $536,811,000
|
| Coupon: | 3.65%
|
| Price: | Par
|
| Yield: | 3.65%
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA+
|
|
|
| Class A certificates
|
| Amount: | $248,627,000
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
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