Published on 8/1/2019 in the Prospect News Investment Grade Daily.
New Issue: American Airlines sells $1.1 billion pass-through certificates in three tranches
By Cristal Cody
Tupelo, Miss., Aug. 1 – American Airlines, Inc. priced $1,096,508,000 of series 2019-1 pass-through certificates in three tranches on Thursday, according to a market source.
The company sold $578,712,000 of 3.15% class AA senior certificates (Aa3/AA/) at a spread of 126 basis points over Treasuries.
A tranche of $289,358,000 of 3.5% class A subordinated certificates (A2/A) priced with a Treasuries plus 161 bps spread.
American Airlines sold $228,438,000 of 3.85% class B junior subordinated certificates (Baa3/BBB-) at a 217 bps over Treasuries spread.
The notes priced tighter than initial talk.
The class AA and class A certificates have a weighted average life of 8.7 years. The class B certificates have a 5.6-year weighted average life.
The class AA and A certificates have a final distribution date of Feb. 15, 2032 and a legal distribution date of Aug. 15, 2033, while the class B certificates have a final distribution date of Feb. 15, 2028 and a legal distribution date of Aug. 15, 2029.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC were the lead bookrunners.
Joint bookrunners included Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays, J.P. Morgan Securities LLC, ICBC Standard Bank plc, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Credit Agricole Securities, HSBC Securities (USA) Inc., MUFG, Standard Chartered Bank, U.S. Bancorp Investments, Inc. and BOK Financial Securities, Inc.
Proceeds will be used to purchase aircraft.
The commercial airline, which is a subsidiary of AMR Corp., is based in Fort Worth, Tex.
| Issuer: | American Airlines, Inc.
|
| Amount: | $1,096,508,000
|
| Description: | Series 2019-1 pass-through certificates
|
| Lead bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, BofA Securities, Inc., Barclays, J.P. Morgan Securities LLC, ICBC Standard Bank plc, SMBC Nikko Securities America, Inc., BNP Paribas Securities Corp., Credit Agricole Securities, HSBC Securities (USA) Inc., MUFG, Standard Chartered Bank, U.S. Bancorp Investments, Inc. and BOK Financial Securities, Inc.
|
| Trade date: | Aug. 1
|
| Distribution: | SEC registered
|
|
|
| Class AA certificates
|
| Amount: | $578,712,000
|
| Description: | Senior pass-through certificates
|
| Maturity: | Feb. 15, 2032
|
| Coupon: | 3.15%
|
| Spread: | Treasuries plus 126 bps
|
| Ratings: | Moody’s: Aa3
|
| S&P: AA
|
| Price guidance: | 3.5% area
|
|
|
| Class A certificates
|
| Amount: | $289,358,000
|
| Description: | Subordinated pass-through certificates
|
| Maturity: | Feb. 15, 2032
|
| Coupon: | 3.5%
|
| Spread: | Treasuries plus 161 bps
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Price guidance: | 3.85% area
|
|
|
| Class B certificates
|
| Amount: | $228,438,000
|
| Description: | Junior subordinated pass-through certificates
|
| Maturity: | Feb. 15, 2028
|
| Coupon: | 3.85%
|
| Spread: | Treasuries plus 217 bps
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Price guidance: | 4.15% area
|
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