American Airlines has launched a cash offer for $1.24 billion in outstanding debt.
The Fort Worth-based carrier is offering a $65 premium plus a $5 fee - a total of $70 - for every $1,000 in principal for its 8.625% 2011-2 class A pass through certificates, 10.375% 2009-1 class A certificates and 13% 2009-2 secured notes due 2016.
Tenders are due by 10 July to receive the premium or by 2 August for the face value.
There is $660.4 million outstanding on the 8.625% notes, $425.1 million on the 10.375% notes and $159 million on the 13% notes, according to the airline.
American received approval from the US bankruptcy court to refinance the debt in question with an up to $1.5 billion enhanced equipment trust certificate (EETC) issue in January. However, an objection by US Bank and a subsequent appeal have kept it from issuing the new debt.
A pool of 43 Boeing aircraft, including 16 737-800s, 14 757-200s and 13 777-200ERs, secures the 2011-2 notes. The 2009-1 notes are backed by 16 737-800s and four 777-200ERs.