American Airlines announces proposed offering of senior secured notes

American Airlines announced a proposed private offering of $750 million aggregate principal amount of senior secured notes due 2028. The Notes will be guaranteed on a senior unsecured basis by the Guarantor. The Company expects to use the proceeds from the offering of the Notes to repay a portion of the term loans outstanding under the term loan credit facility established under the Amended and Restated Credit and Guaranty Agreement, dated May 21, 2015, among the Company, the Guarantor, the lenders from time to time party thereto and certain other parties thereto, and to pay related fees and expenses. The Company expects that any term loans not repaid from the net proceeds of the Notes will be amended to extend the maturity date to February 2028. The final terms and amounts of the Notes are subject to market and other conditions, and may be materially different than expectations. The Notes will be secured on a first lien basis by certain slots, gates and routes collateral that the Company uses to provide non-stop scheduled air carrier services between certain airports in the United States and airports in South America and New Zealand. The collateral that will secure the Notes on a first lien basis also secures the credit facilities under the 2013 Credit Agreement on a first lien, pari passu basis with the Notes.