American Airlines closes first EETC of the year

Dino D'Amore
By Dino D'Amore February 2, 2016 21:08

American Airlines closes first EETC of the year

American Airlines has launched $1.1bn secured enhanced equipment trust certificate (EETC) offering, (Series 2016-1). The EETC is offered in three tranches: a $584.374million AA Class with an expected maximum loan to value ratio (LTV) of 39.5%, with an average life of nine years, rated Aa3 by Moody’s, priced at 3.575%; a $262.218million A Class tranche with an average life of nine years, a maximum LTV of 57.2% and rated A2 by Moody’s, priced at 4.1%; and a $227.758million Class B tranche, with has an average life of 5.6 years, a maximum LTV of 72.6% and a rating of Baa3 by Moody’s, priced at 5.250%. The blended coupon for all three tranches was 3.97%

The equipment notes will refinance 22 aircraft: 11 Airbus A321-231 aircraft delivered new to US Airways from September 2014 to June 2015, six Boeing 737-823 aircraft delivered new to American from September 2015 to December 2015, one Boeing 777-323ER aircraft delivered new to American in October 2015, and four Boeing 787-8 aircraft delivered new to American from April 2015 to December 2015. The appraised, maintenance adjusted base values of the aircraft is $1.498bn.

KfW IPEX-Bank will provide a separate liquidity facility for each of the Class AA Certificates, Class A Certificates and Class B Certificates.

Goldman Sachs and Citigroup are the joint structuring agents and lead bookrunners. Morgan Stanley, Credit Suisse and Deutsche Bank are joint active bookrunners. Joint bookrunners are BofA Merrill Lynch, Barclays, JPMorgan, BNP Paribas and Credit Agricole Securities. US Bancorp is a co-manager.

Dino D'Amore
By Dino D'Amore February 2, 2016 21:08