By Paul A. Harris
Portland, Ore., Sept. 18 – American Airlines Group Inc. priced an upsized $750 million issue of non-callable five-year senior notes (B3/B-/) at par to yield 5½% on Thursday, according to a syndicate source.
The deal was upsized from $500 million.
The yield printed on top of yield talk and on top of initial guidance, according to a trader.
Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC were the joint bookrunners.
The Fort Worth-based company plans to use the proceeds for general corporate purposes. The additional $250 million of proceeds resulting from the upsizing of the deal will also be used for general corporate purposes.
The commercial airline is a subsidiary of AMR Corp.
| Issuer: | American Airlines Group Inc.
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | Oct. 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Co-managers: | BNP Paribas Securities Corp., Credit Agricole CIB
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 362 bps
|
| Call protection: | Non-callable
|
| Trade date: | Sept. 18
|
| Settlement date: | Sept. 25
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% area
|
| Marketing: | Quick to market
|
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