American Airlines gets $1 billion 364-day delayed-draw term loan

By Sarah Lizee

Olympia, Wash., March 19 – American Airlines Group Inc. and subsidiary American Airlines, Inc. entered into a credit agreement with Citibank, NA as administrative agent on Wednesday, providing for a $1 billion 364-day senior secured delayed-draw term loan credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Citibank is the left lead arranger and bookrunner; Bank of America, NA, Goldman Sachs Bank USA and JPMorgan Chase Bank, NA are joint lead arrangers and bookrunners; Citibank, Bank of America, Goldman Sachs Bank USA and JPMorgan Chase are syndication agents; and Citibank, Bank of America, Goldman Sachs Bank USA and JPMorgan Chase are documentation agents.

Term loans under the facility will be due in a single installment on the maturity date on March 17, 2021.

As of Wednesday, the facility was undrawn.

The proceeds from the facility will be used for general corporate purposes.

Pricing is Libor plus 200 basis points, stepping up to 275 bps 180 days after closing. There is a 1% Libor floor.

The credit agreement includes affirmative, negative and financial covenants.

As of Wednesday, the company had about $8.4 billion of total available liquidity, consisting of $4.2 billion in unrestricted cash and short-term investments, $3.2 billion in undrawn capacity under American’s revolving credit facilities and $1 billion in undrawn capacity under the facility.

The company is a Fort Worth-based airline.

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