American Airlines has amended its outstanding term loans from 2014.
Under this eighth amendment of the 2014 credit agreement, American, has refinanced the existing term loans and borrowed an additional $17.8 million to pay for the associated fees and expenses, which raises the principal amount available to $1.220bn.
The interest rate margin on the 2020 term loans is 1.75% for those loans with interest rates based on LIBOR (compared to 2.00% for the existing term loans), with a floor of 0%, and 0.75% for loans with interest rates based on an index (compared to 1.00% for the existing term loans). The amended term loans will mature on January 29, 2027.
The revolving credit facility under the 2014 credit agreement remains unchanged.
Citi is administrative agent and designated replacement term lender.