American Airlines launches new EETC

Eleanor Steed
By Eleanor Steed August 16, 2017 10:26

American Airlines launches new EETC

American Airlines has launched a new three-tranched enhanced equipment trust certificate (EETC) transaction (Series 2017-2). The $796.898 million EETC secures a portfolio of 30 aircraft, including three new 737-800s due for delivery to American from October 2017 to December 2017, nine 737 MAX 8s due for delivery from September 2017 to April 2018; three 787-9s due for delivery from November 2017 to February 2018, and 15 Embraer ERJ 175 LR aircraft, which were delivered new to American from October 2015 to August 2016.

The EETC is offered in two classes of notes with the option to add a B class in the future. The $544.644 million of AA notes, due Oct 15, 2029, are priced at 3.350%, with the $252.254 million A notes priced at 3.600%.
Goldman Sachs, Credit Suisse and Deutsche Bank are the joint structuring agents and the lead bookrunners. Joint bookrunners are Citi, Morgan Stanley, Bank of American Merrill Lynch, Barclays, JPMorgan, BNP Paribas, Credit Agricole, ICBC and US Bancorp are joint bookrunners. Academy Securities is a co-manager.

National Australia Bank will provide a separate liquidity facility for each of the Class AA Certificates and Class A Certificates. Natixis is the depositary bank.

Eleanor Steed
By Eleanor Steed August 16, 2017 10:26