American Airlines prices USD957m aircraft financing

4 September 2014

American Airlines, Inc., a wholly-owned subsidiary of American Airlines Group Inc. (NASDAQ: AAL) said that it priced an offering of two classes of enhanced equipment trust certificates for USD957m.

Proceeds of the offering are expected to be used to acquire equipment notes issued by the company and secured by five Airbus A319-112 aircraft delivered new to the company in 2013, seven Airbus A321-231 aircraft delivered new to the company in 2014, and five Boeing 777-323ER aircraft delivered new to the company from 2012 to 2014. The company said it will use the proceeds from the issuance of such equipment notes for general corporate purposes and to pay fees and expenses related to the offering.

The USD957m financing is comprised of approximately USD742m of class A certificates with a final expected distribution date of October 1, 2026 and approximately USD215m of class B certificates with a final expected distribution date of October 1, 2022. The certificates are expected to be issued on September 16, 2014, subject to customary closing conditions.

Goldman, Sachs and Co. acted as sole structuring agent and lead bookrunner for the offering. Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley and Co. LLC, Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner and Smith Inc., Barclays Capital Inc., BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc. and J.P. Morgan Securities LLC acted as joint book-runners for the offering.

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