American Airlines closes EETC C tranche; announces $1.5bn term loan

Victoria
By Victoria June 6, 2013 12:55

American Airlines closes EETC C tranche; announces $1.5bn term loan

 

American Airlines has added a C tranche to its 2013-1 Series enhanced equipment trust certificates (EETC), which were issued on March 12, 2013.


The $119.8 million Class C Certificates, which will feature a 5.1 year bullet maturity, have a coupon of 6.125% and priced at par. The notes are secured on 13 Boeing aircraft: eight currently owned Boeing 737-823 aircraft, one currently owned Boeing 777-223ER aircraft, two currently owned Boeing 777-323ER aircraft, and two new Boeing 777-323ER aircraft currently scheduled for delivery to American during the period from June 2013 to July 2013. The C notes, which have an expected maturity of July 2018, have been rated CCC by Fitch.

 

Taken together the three-tranche EETC has allowed American to raise funds of $783 million with a blended coupon of just over 4.5% – a considerable achievement for an airline still in bankruptcy. The C notes were arranged by Deutsche Bank, Morgan Stanley, Citigroup, Goldman Sachs and JP Morgan.

 

Meanwhile, the airline is preparing to launch a $1.5bn term loan, which is secured on the airline’s routes and slots in South America. The loan was approved by the bankruptcy court in May and is due to allocated within two weeks from June 5. A lenders meeting was held on June 6. Deutsche Bank is lead left bookrunner on this transaction.

 

Goldman Sachs was joint lead arranger with the other participating banks

Victoria
By Victoria June 6, 2013 12:55
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Ffinance%2Famerican-airlines-closes-eetc-c-tranche-announces-1-5bn-term-loan%2F"> registered </a> users can comment.