American closes latest 737-800 sale-leaseback with ILFC

Washington DC
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The US Bankruptcy Court for the Southern District of New York has approved a previously negotiated sale-leaseback transaction between American Airlines and the International Lease Finance Corporation (ILFC) for a Boeing 737-800.

The airline took delivery of the aircraft, which is registered N895NN and has the manufacturer's serial number 31149, on 3 July, according to Flightglobal's Ascend database.

Wilmington Trust is the trustee.

ILFC has the capacity to finance the aircraft off its balance sheet. It sold $1.5 billion in senior bonds to repay a $750 million term loan and for general corporate purposes, including the purchase of aircraft, in March. The issue was split into two $750 million tranches, one with a 2015 maturity and a 4.875% coupon and one with a 2019 maturity and a 5.875% coupon.

The transaction is part of an agreement signed by American and ILFC for 15 737-800s in November 2011 before the Fort Worth-based carrier filed for chapter 11 bankruptcy protection.