American Airlines launches $1.97 billion two-tranche loan repricing

By Paul A. Harris

Portland, Ore., Oct. 17 – American Airlines, Inc. launched a $1.97 billion two-part senior secured term loan repricing (Ba2/BB+), according to a market source.

It includes a $970 million senior secured term loan due 2019, talked Libor plus 225 basis points with no Libor floor and no discount, and a $1 billion senior secured term loan due 2023, talked Libor plus 250 bps atop a 0.75 bps Libor floor.

Both tranches are talked at par and feature 101 soft call protection for six months.

Commitments are due on Oct. 25.

Barclays is the lead arranger.

The Fort Worth-based commercial airline plans to use the proceeds to reprice its existing senior secured term loans due 2019 and 2023.

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