American Airlines launches extension and repricing of 2013 term loan

By Sara Rosenberg

New York, May 6 – American Airlines Inc. held a lender call at 3:30 p.m. ET on Wednesday to launch an extension and repricing of its $1,867,000,000 term loan B obtained in 2013, according to a market source.

The company is seeking to push out the maturity on the loan to June 2020 from June 2019 and lower pricing to Libor plus 275 basis points from Libor plus 300 bps, the source said.

The 0.75% Libor floor on the term loan would remain unchanged.

Also, the company is asking to align the collateral release/substitution terms with comparable Slots, Gates and Routes collateralized credit facilities and to align the restricted payments construct with other American Airlines/US Airways credit facilities, the source added.

Deutsche Bank Securities Inc. is the lead bank on the deal.

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

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