American Airlines sets pricing on $750 million seven-year term loan

By Paul A. Harris

Portland, Ore., Sept. 24 – American Airlines Inc. set pricing on a $750 million seven-year term loan, a market source said on Wednesday.

The deal is talked at Libor plus 325 basis points to 350 bps with a 0.75% Libor floor at 99.00. It features a 101 soft call for six months and 1% annual amortization.

Citigroup is the left arranger. BofA Merrill Lynch, Barclays, BNP Paribas, Credit Agricole CIB, Credit Suisse, Deutsche Bank Securities, Goldman Sachs & Co., JPMorgan and Morgan Stanley are joint lead arrangers.

Proceeds will be used for general corporate purposes.

The $1.15 billion credit facility (/BB-/) also includes a $400 million revolver.

American Airlines is a Fort Worth-based airline company.

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