American Airlines plans to issue a $100 million subordinate enhanced equipment trust certificate (EETC) tranche to refinance a similarly sized deal that matures this year.
The planned 2012-2 C notes will have five-year bullet maturity and are expected to price at around 220bps over the five-year US Treasury bond yield, a source familiar with the transaction says.
Proceeds of the deal would be used to refinance the $100 million 2012-2 C tranche that has a bullet maturity this year, Fitch Ratings says in a report.
Fitch rates the planned notes BB, it says.
The 2012-2 notes, which were initially issued by US Airways in December 2012, are secured by seven Airbus A321s and four Airbus A330-200s in American's fleet.
American merged with US Airways in December 2013.
Deutsche Bank is the sole bookrunner of the new 2012-2 notes, the source says. Natixis is the escrow agent, according to Fitch.
American declines to comment.
Source: Cirium Dashboard
