American Airlines has priced its $663 million two-tranche enhanced equipment trust certificates (EETC) private placement.
The $506.7 million class A notes carry an all-in coupon of 4% and the $156.6 million class B notes carry a coupon of 5.625%, confirms the Fort Worth-based carrier. The senior A notes mature in July 2025 and the subordinate B notes in January 2021.
The 2013-1 EETC issue is backed by eight Boeing 737-800s, one Boeing 777-200ER and four Boeing 777-300ERs.
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.
The pricing on American's 2013-1 issue is comparable to that on senior EETC tranches issued in 2012. US Airways achieved a 4.625% all-in rate on the $418.1 million A tranche of its 2012-2 issue in November and United Continental-subsidiary Continental Airlines a 4% rate on the $711.6 million A tranche of its 2012-2 issue in September.
The US Bankruptcy Court for the Southern District of New York approved the up to $750 million EETC deal on 15 February.
Deutsche Bank, JP Morgan and Morgan Stanley are underwriting the placement. Natixis is the depositary and Wilmington Trust is the trustee.