American Airlines inks new Treasury loan agreement

American Airlines has entered into a new loan and guarantee agreement with the United States Treasury. The transaction provides for a secured term loan facility which permits American to borrow up to $5.477bn. The airline has also been advised by the Treasury that this amount could be increased in October to $7.5bn. American borrowed $550 million on the closing date – with an interest rate of 3.87% per annum. The airline is able to borrow additional amounts in up to two subsequent borrowings until March 26, 2021. The proceeds from the facility will be used for certain general corporate purposes