American Airlines Group, Inc. · NASDAQ:AAL
American Airlines — IPO Roadshow (May 2016)
16 slides from American Airlines's IPO roadshow presentation, May 2, 2016
Slide 1: American Airlines, Inc. Series 2016-2 EETC Investor Presentation
American Airlines, Inc. Series 2016-2 EETC Investor Presentation May 2016
Slide 2: Cautionary Statement Regarding Forward-Looking Statements and Information
Cautionary Statement Regarding Forward-Looking Statements and Information This document includes forward-looking statements within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Private Securi
Slide 3: Investor presentation offering notice
This Investor Presentation highlights basic information about the issuer and this offering. Because it is a summary, it does not contain all of the information that you should consider before investing. The issuer has filed a registration statement (including a prospectus) with the SEC for the offer
Slide 4: Transaction Overview
Transaction Overview • American Airlines, Inc. (“American”) intends to issue $828,644,000 in aggregate face amount of Pass Through Certificates, Series 2016-2 (“American 2016-2”), in two classes: Class AA Certificates and Class A Certificates, collectively, the “Certificates” Class AA Certificates:
Slide 5: American 2016-2 EETC Structural Summary
American 2016-2 EETC Structural Summary Class AA Class A Face Amount $567,360,000 $261,284,000 Expected Ratings (Moody’s / S&P) [Aa3 / AA] [A2 / A] Initial LTV / Maximum LTV(1) 38.6% 56.4% Initial Average Life 9.1 years 9.1 years June 15 & December 15 June 15 & December 15 Regular Distribution Dates
Slide 6: Key Structural Elements
Key Structural Elements Two Classes of Certificates Offered • Two tranches of amortizing debt, each of which will benefit from a liquidity facility covering three semi-annual interest payments Waterfall • Interest on the Eligible Pool Balance of the Class A Certificates is paid ahead of Class AA Cer
Slide 7: Comparing American 2016-2 EETC to 2016-1 EETC
Comparing American 2016-2 EETC to 2016-1 EETC American Airlines 2016-1 EETC(1) American Airlines 2016-2 EETC Corporate Rating (M / S) Ba3 / BB- Ba3 / BB- Class AA Initial Principal Amount $584,374,000 $567,360,000 Equipment Note Advance 39.0% 38.0% Initial / Max LTV 39.0%(2)/ 39.5% 38.6%(3) / 38.6%
Slide 8: II. The Aircraft
II. The Aircraft
Slide 9: Attractive Aircraft Pool
Attractive Aircraft Pool • American has obtained maintenance adjusted Base Value Desktop Appraisals from three appraisers (AISI, BK and mba) • Aggregate aircraft appraised value of approximately $1,493 million • Appraisals indicate collateral cushions as of the first regular distribution date of 61.
Slide 10: 2016-2 EETC Collateral Observations
2016-2 EETC Collateral Observations • Newer collateral than in American’s 2016-1 EETC ? Only 32% of 2016-2 EETC collateral will be in-service at issuance vs 100% of the collateral in the 2016-1 EETC(1) • Collateral pool is representative of American’s go-forward, short-haul and long-haul fleet strat
Slide 11: Airbus A321-200S
Airbus A321-200S The Airbus A321 has wide market appeal • The A321-200 variant continues to be an increasingly popular aircraft in the 180 to 220 seater category • Benefits from airlines up-gauging as it has lower seat-mile costs than 150-seaters; provides more capacity at slot-constrained airports
Slide 12: Airbus A321-200S
Airbus A321-200S • A321 is the best-selling aircraft in its class with 1,500+ net orders and 1,150+ deliveries • Clear trend for more A321 demand with A321 making up 18%, 31%, 38% and 44% of the deliveries within the A320 Family in 2012, 2014, 2015 and scheduled for 2016, respectively • Large single
Slide 13: Boeing 737-800
Boeing 737-800 • Today, the 737-800 is the workhorse of the American fleet, 737-800 Scheduled Deployment accounting for over 30% of domestic Available Seat Miles (“ASMs”) - In the combined American network, the 737-800 accounts for more domestic ASMs than the MD-80 and regional fleet combined • Over
Slide 14: Boeing 777-300ER and 787-8
Boeing 777-300ER and 787-8 • Boeing 777-300ER is the best selling wide-body variant to date; it is a core long-haul type worldwide, lessor and financier favorite, and a regular in recent secured capital markets transactions • Boeing 787-8 delivers up to 20% better fuel burn than the Boeing 767; enab
Slide 15: Fleet Replacement Plan
Fleet Replacement Plan • The Company is making significant investments in its fleet… New Deliveries 2016 2017 2018 Beyond 2018 Total A320 Family / Neo 25 20—100 145 A350-900—4 10 8 22 737-800 / Max 20 24 16 80 140 777-300ER 2 —2 787 Family 8 13 8—29 Mainline Total 55 61 34 188 338 CRJ-700 7 —7 CRJ-9
Slide 16: Fleet Replacement Plan
Fleet Replacement Plan • …resulting in one of the youngest and most fuel efficient fleets in the industry Average Fleet Age 18 16.8 yrs 16.7 yrs 14.7 yrs 14.0 yrs Years 13 13.3 yrs 12.1 yrs 10.4 yrs 9.6 yrs 8 2012 2013 2014 2015 2016E 2017E Source: SEC Form 10-K and Ascend Fleets data base; projecte