American Airlines amends revolvers for $2.81 billion due 2024, 2026

By Wendy Van Sickle

Columbus, Ohio, March 13 – American Airlines, Inc. and American Airlines Group Inc. entered into amendments to three credit agreements on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The companies amended their 2014 credit agreement with Citibank, NA as administrative agent to incur incremental revolving commitments in an aggregate amount of $1,247,900,000 and terminate a proportionate amount of the revolving commitments that remained outstanding under the revolver.

The terms are substantially similar to those of the existing revolver except the existing commitments mature on Oct.11, 2024 and the incremental commitments mature on Oct. 13, 2026.

Also, the benchmark interest rate for revolver and term loan borrowings under the credit agreement transitioned to SOFR from Libor. The revolver has an applicable margin ranging from 325 basis points to 375 bps, and the term loan has a margin of 175 bps, both depending on ratings.

The companies also amended the 2013 credit agreement with Barclays Bank plc as administrative agent to incur incremental revolver commitments of $563 million. The terms are substantially similar to those of the existing revolver except the existing commitments mature on Oct. 11, 2024 and the incremental commitments mature on Oct. 13, 2026. This revolver also has a margin of 325 bps to 375 bps, depending on ratings.

The companies also amended the April 2016 credit agreement with Barclays as agent to incur incremental revolving commitments of $341.6 million and terminate a proportionate amount of existing outstanding commitments. The terms are substantially similar to those of the existing revolver except the existing commitments mature on Oct. 11, 2024 and the incremental commitments mature on Oct. 13, 2026. This revolver also has a margin of 325 bps to 375 bps, depending on ratings.

As a result of these amendments, through Oct. 11, 2024, the total commitments under the three credit agreements will be $2,812,500,000 through Oct. 11, 1024 and will then decrease to $2,152,500,000 through Oct. 13, 2026.

American Airlines is a Fort Worth-based airline company.

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