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American Airlines Announces Pricing of Senior Secured Notes
FORT WORTH, Texas, Nov. 17, 2023 (GLOBE NEWSWIRE) -- American Airlines, Inc. (the “Company”), a subsidiary of American Airlines Group Inc. (the
About this update from American Airlines Group, Inc.
[{"type":"text","content":"FORT WORTH, Texas, Nov. 17, 2023 (GLOBE NEWSWIRE) -- American Airlines, Inc. (the “Company”), a subsidiary of American Airlines Group Inc. (the “Parent”)(NASDAQ: AAL), today announced that it priced $1.0 billion aggregate principal amount of its 8.50% senior secured notes due 2029 (the “Notes”), representing an upsize of $250.0 million from the previously announced offering amount. The Notes will have an interest rate of 8.50% per annum and are being issued at par. Concurrent with the issuance of the Notes, the Company also expects to borrow up to $1.1 billion in aggregate principal amount of term loans (the “Term Loan”) under a new senior secured credit facility, subject to customary closing conditions, representing an increase of $350.0 million from the previously announced size of the Term Loan. The offering of the Notes is expected to close on December 4, 2023, subject to customary closing conditions. The Term Loan is also expected to be consummated on or around December 4, 2023, subject to customary closing conditions. The Company expects to use the net proceeds from the offering of the Notes, together with the net proceeds from the Term Loan and cash on hand, to redeem all of its outstanding 11.75% Senior Secured Notes due 2025 (the “11.75% Senior Secured Notes”). The Notes and the Term Loan will be secured on a first lien basis by the same collateral that currently secures the 11.75% Senior Secured Notes on a first lien basis, consisting of certain slots, gates and routes that the Company uses to provide nonstop scheduled air carrier services between certain airports in the United States and certain airports in Australia, Canada, the Caribbean, Central America, China, Hong Kong, Japan, Mexico, South Korea, and Switzerland. The Notes and the Term Loan will be guaranteed on a senior unsecured basis by the Parent. The Notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers, as defined in, and in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to non-U.S. persons in offshore transactions outside the United States in reliance on Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or any other securities laws of any jurisdiction and will not have the benefit of any exchange offer or other ...