American Airlines ups term B to $1.25 billion, revises OID to 99.75

By Sara Rosenberg

New York, Dec. 7 – American Airlines Inc. upsized its seven-year senior secured term loan B (Ba1/BB+) to $1.25 billion from $1 billion and tightened the original issue discount to 99.75 from 99.5, according to a market source.

As before, the term loan is priced at Libor plus 250 basis points with a 0.75% Libor floor, and has 101 soft call protection for six months.

Covenants include minimum unrestricted liquidity and a minimum collateral coverage ratio of 1.6 times.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BNP Paribas Securities Corp., Credit Agricole, ICBC and U.S. Bank NA are the joint lead arrangers on the deal.

Commitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to repay a 2019 term loan and for general corporate purposes.

Closing is targeted for Dec. 15.

American Airlines is a Fort Worth-based airline company.

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