American Airlines has priced a private offering of $750 million senior secured notes due 2028 at 7.25%. The notes are being offered at par.
The notes will be secured with slots, gates and routes collateral on non-stop scheduled American services between routes to South America and New Zealand on a first lien basis, which also secure the credit facilities under the 2013 Credit Agreement “on a first lien, pari passu basis”.
American expects to use the proceeds from the offering of the notes to repay a portion of the term loans outstanding under a 2015 term loan. Any term loans not repaid from the net proceeds of the offering “will be amended to extend the maturity date to February 2028”.
