American Airlines sets price talk for $750 million term loan B

By Paul A. Harris

Portland, Ore., April 8 – American Airlines Group Inc. set price talk on its $750 million senior secured term loan B due Oct. 10, 2021 (B2/BB), according to a market source.

The deal is talked at a 300 to 325 basis points spread to Libor, with a 75 bps Libor floor at par.

It features a six-month soft call at 101 and 1% annual amortization.

Commitments are due on April 15, and the deal is expected to close on April 20.

Joint lead arranger Citigroup Global Markets is the administrative agent.

BofA Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co., BNP Paribas and Credit Agricole CIB are also joint lead arrangers.

The new loan has mandatory prepayments, negative covenants and financing covenants that are the same as the existing term loan B.

Proceeds will be used to pay off the existing term loan B.

The commercial airline, a subsidiary of AMR Corp., is based in Fort Worth.

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