American closes subordinate $256m EETC

Washington DC
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American Airlines has closed $256 million in private enhanced equipment trust certificate (EETC) notes.

The three-year 2013-2 series C debt carries a coupon of 6%, which is equal to a 532bp spread over three-year US treasury bonds on 13 December when the issue launched. The debt is subordinate to the Fort Worth, Texas-based carrier's $1.41 billion 2013-2 A and $512 million 2013-2 B issues.

The final distribution is in January 2017.

The debt is secured by 75 Boeing aircraft that are already in American’s fleet. These include 41 737-800s, 14 757-200s, one 767-300ER and 19 777-200ERs.

Morgan Stanley, Credit Suisse, Deutsche Bank, Goldman Sachs, Citi and JP Morgan were bookrunners, according to a stock exchange filing. Wilmington Trust is trustee.

The 2013-2 series C notes closed on 20 December.