AMR launches $500 million add-on term loan at discount of 99½

By Sara Rosenberg

New York, July 30 - AMR Corp. (American Airlines) held a call on Tuesday to launch a $500 million add-on to its debtor-in-possession/exit financing term loan (NA/NA/BB-), according to a market source.

The add-on is priced at Libor plus 375 basis points with a 1% Libor floor, in line with the existing term loan, and is being offered at an original issue discount of 991/2, the source said.

Commitments are due on Wednesday.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc., BofA Merrill Lynch and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Proceeds will be used to add cash to the balance sheet.

AMR is a Fort Worth, Texas-based airline company.

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