American Airlines gets approval to amend fixed-charge requirement

By Sara Rosenberg

New York, June 25 - American Airlines Inc. received enough lender consents by Thursday's deadline to amend its term loan B to waive the fixed-charge covenant for the second quarter and loosen it thereafter, according to an 8-K filed with the Securities and Exchange Commission.

The fixed-charge ratio is now set at 0.95:1.00 for the quarters ending Sept. 30, Dec. 31, 2010 and March 31, 2010, 1.00:1.00 for the quarters ending June 30, 2010, and 1.05:1.00 for the quarters ended Sept. 30, 2010.

As part of the amendment, pricing on the term loan B is increasing to Libor plus 400 basis points from Libor plus 200 bps, and a 2.5% Libor floor is being added.

Lenders are being paid a 75 bps amendment fee.

Citigroup is the lead bank on the amendment.

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

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