American Airlines closed its $663 million enhanced equipment trust certificate (EETC) private placement today.
The two-tranche 2013-1 deal was split between $506.7 million in class A notes with a coupon of 4% that mature in July 2025, and $156.6 million in class B notes with a rate of 5.625% that mature in January 2021. The notes are backed by eight Boeing 737-800s, one Boeing 777-200ER and four Boeing 777-300ERs.
The deal attracted more than 100 investors and was oversubscribed to $4 billion, says a source familiar with the issue.
This is American's first EETC issue since it filed for chapter 11 bankruptcy in November 2011.
The A tranche is rated BBB+ by Fitch Ratings and BBB- by Standard & Poor's, and the B tranche is rated B by Fitch and B+ by S&P.
Citi, Deutsche Bank, Goldman Sachs, JP Morgan, Morgan Stanley and Natixis underwrote the placement to institutional investors.