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