American Airlines seeks amendment to modify fixed-charge requirement

By Sara Rosenberg

New York, June 23 - American Airlines Inc. is looking to amend its term loan B to waive the fixed-charge covenant for the second quarter and loosen it thereafter, according to a market source.

In return, lenders would get increased pricing on the term loan B of Libor plus 400 basis points, up from Libor plus 200 bps, and the addition of a 2.5% Libor floor.

Also, lenders will be paid a 75 bps amendment fee.

Consents are due at the end of the day on Thursday.

Citigroup is the lead bank on the amendment that was launched on Monday.

Currently, the company has no revolving credit facility since it matured last week.

American Airlines is a Fort Worth, Texas-based airline company.

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