American Airlines firms $1.22 billion term loan B to 99.75 OID

Chicago, Jan. 23 – American Airlines Inc. firmed talk on its upsized $1.22 billion seven-year term loan B (Ba1/BB+) to an original issue discount of 99.75, modified from earlier talk in the 99 to 99.5 range, according to a market source.

The size of the loan was increased from $1,215,000,000.

A spread of Libor plus 175 basis points with a 0% Libor floor is still expected.

The term loan has 101 soft call protection for six months.

Maintenance covenants include minimum unrestricted liquidity of $2 billion and a minimum collateral coverage ratio of 1.6x.

Citigroup Global Markets Inc. is the lead arranger and administrative agent on the deal.

Proceeds will be used to amend and extend an existing $1,202,000,000 term loan B due 2021 that is priced at Libor plus 200 bps, and to pay fees and expenses.

Recommitments were due at 5 p.m. ET on Thursday.

Closing is expected during the week of Jan. 27.

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

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