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American Airlines Announces Proposed Offering of Senior Secured Notes and New Term Loan
FORT WORTH, Texas, Nov. 16, 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. 16, 2023 (GLOBE NEWSWIRE) -- American Airlines, Inc. (the “Company”), a subsidiary of American Airlines Group Inc. (the “Parent”)(NASDAQ: AAL), today announced a proposed private offering of $750 million aggregate principal amount of senior secured notes due 2029 (the “Notes”). The Company also announced it intends to borrow up to $750 million in aggregate principal amount of term loans (the “Term Loan”) under a new senior secured credit facility. 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 $1.5 billion of its existing 11.75% Senior Secured Notes due 2025 (the “11.75% Senior Secured Notes”). The final terms and amounts of the Notes and the Term Loan are subject to market and other conditions and may be materially different than expectations. Neither the consummation of the Notes offering, nor the consummation of the Term Loan, is conditioned upon the consummation of the other financing. Further, the Company may, in its sole discretion, redeem additional 11.75% Senior Secured Notes. The Notes and the Term Loan will be secured on a first lien basis by the same collateral that 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 also be secured on a second lien basis by the same collateral that secures the 11.75% Senior Secured Notes on a second lien basis, consisting of certain slots, gates and routes the Company uses to provide nonstop scheduled air carrier services between certain airports in the United States and certain airports in the European Union and United Kingdom. The Notes and the Term Loan will be guaranteed on a senior unsecured basis by the Parent. The Notes will be 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 relian...