American Airlines launches $1.25 billion loan at Libor plus 200 bps

By Sara Rosenberg

New York, Nov. 6 – American Airlines Inc. launched on Monday a $1.25 billion senior secured term loan B due Dec. 14, 2023 with price talk of Libor plus 200 basis points with a 0% Libor floor and a par issue price, according to a market source.

The term loan is getting 101 soft call protection for six months.

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

Proceeds will be used to reprice an existing term loan due Dec. 14, 2023 from Libor plus 250 bps with a 0.75% Libor floor.

Existing lender commitments are due at 5 p.m. ET on Thursday, and new lender commitments are due at noon ET on Friday, the source added.

Closing is targeted for Nov. 14.

American Airlines is a Fort Worth-based airline company.

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