Court approves American's $750m EETC deal

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A US bankruptcy court has approved a $750 million enhanced equipment trust certificates (EETC) issue by American Airlines backed by 13 aircraft.

Proceeds of the 2013-1 issue will be used to finance four new Boeing 777-300ERs and to repay outstanding debt against eight Boeing 737-800s and a 777-200 currently in its fleet, according to a court filing by American in January. The aircraft will back the EETC debt.

The EETCs will be split into a senior A tranche with a maturity of 5.5 to 12.5 years, and a subordinate B tranche with a maturity of 5.5 to eight years, according to the airline's filing.

The US Bankruptcy Court for the Southern District of New York approved the financing on 15 February.

Deutsche Bank, JP Morgan and Morgan Stanley are underwriting the 2013-1 issue. Natixis is the depositary and Wilmington Trust is the trustee.