American airlines announces upsize of aadvantage financing to $10.0 billion and pricing of senior secured notes

Fort worth, texas, march 10, 2021 (globe newswire) -- american airlines group inc. (nasdaq: aal) (the “company”) today announced the upsize and pricing of the previously announced private offering by the company's subsidiary, american airlines, inc. (“american”), and aadvantage loyalty ip ltd., a newly formed cayman islands exempted company incorporated with limited liability and an indirect wholly owned subsidiary of the company and american. an aggregate of $3.5 billion in principal amount of 5.50% senior secured notes due 2026 and an aggregate of $3.0 billion in principal amount of 5.75% senior secured notes due 2029 (collectively, the “notes”) are expected to be issued on march 24, 2021, subject to customary closing conditions. the notes will be issued at a price to investors of 100% of their principal amount. concurrent with the issuance of the notes, american and aadvantage loyalty ip ltd. expect to enter into a credit agreement providing for a $3.5 billion term loan facility (the “new aadvantage term loan facility”), also subject to customary closing conditions. in total, the notes and new aadvantage term loan facility will provide gross proceeds of $10.0 billion, an increase of $2.5 billion from the anticipated original $7.5 billion transaction size, at a blended average annual coupon rate of 5.575%.
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